Running a business in the UK that requires importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you can ensure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.
If you import taxable goods into the UK you will then be charged import vat or customs duties. These duties need to be paid on the valuation of the products and they are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is known as the ?ad valorem duty? and then there www.vatvalidation.com/vat are 6 methods that can be used to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a certain way of the valuation on the goods that you have imported to the UK.
In case you have imported goods into the UK from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you have effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the United Kingdom then you can make an application for vat reclaim to get the previous amount back to your account. You will need to mention your vat number and provide your vat certificate to the country of origin when you file for a vat refund. Although refund process might take between four to 8 months to materialize, your costs will definitely get lowered. You ought to employ the expertise of a competent vat agent that charges fees only on the volume of refunds that you receive. This move will provide a reason to your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and begin selling the same under vat invoices then you’ll have to maintain detailed accounts of the amount of vat paid and collected built in. You’ll have to mention these vat amounts in your vat returns which will have to be filed regularly in line with the vat scheme which you have chosen. You should remember that any genuine mistake on your part while importing goods into the UK ought to be rectified as quickly as possible as it could be construed as evasion of customs duties and would invoke strict action including penalties from the hmrc department. Your vat agent must have complete knowledge on customs and excise rules as well as eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.
If you’re a vat registered trader in the UK that must import goods to the UK then you will surely have to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the nation of origin on goods and even on services that have been utilized in that country. A competent vat agent will help you decipher vat customs rules and help you to get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.