Running a business in the UK that needs importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you can make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
In case you import taxable goods to the UK you will then be charged import vat or customs duties. These duties have to be paid on the valuation of the goods and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is called the ?ad valorem duty? and there are 6 methods that can be used vatvalidation.com/vat to arrive at the amount of this duty. You will have to provide documentary proof to hmrc vat department as to the reasons you have chosen a certain way of the valuation on the products which you have imported to the UK.
In case you have imported goods into the UK originating from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK then you can make an application for vat reclaim so as 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 could take between four to 8 months to materialize, your costs will certainly get lowered. You should employ the services 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’ve paid vat customs on your goods and begin selling the same under vat invoices then you will have to maintain detailed accounts of the level of vat paid and collected built in. You will have to mention these vat amounts during your vat returns which will need to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake by you while importing goods into the UK ought to be rectified as quickly as possible since it may be construed as evasion of customs duties and would invoke strict action including penalties from the hmrc department. Your vat agent should have complete knowledge on customs and excise rules along with eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.
If you are a vat registered trader in the United Kingdom that needs to import goods to the UK then you’ll surely have to pay all applicable customs duties on the same. However, you can also reclaim vat amounts paid in the country of origin on goods and also on services that were 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 into the UK.