Running a business in the UK that requires importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules can benefit your business as you’re able make sure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.
If you import taxable goods to 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 are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is called the ?ad valorem duty? and then there are 6 methods you can use vatvalidation.com/vat to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a certain method for the valuation on the products which you’ve 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 prior to goods were dispatched to the UK then you have effectively paid double tax on the very same goods. If you are a vat registered trader in the United Kingdom then you can apply for vat reclaim so as to get the earlier amount back into your bank account. You will have to mention your vat number and give your vat certificate to the country of origin when you apply for a vat refund. Although the refund process might take between four to eight months to materialize, your costs will definitely get lowered. You should employ the expertise of a capable vat agent that charges fees only on the volume of refunds that you receive. This move will give you a reason to your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on the goods and begin selling the same under vat invoices then you’ll need to maintain detailed accounts of the level of vat paid and collected built in. You’ll have to mention these vat amounts during your vat returns that will have to be filed regularly based on 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 must have complete knowledge on customs and excise rules along with eu vat and uk vat rules so that there are no miscalculations while importing goods to the UK.
If you are a vat registered trader in the United Kingdom that needs to import goods to the UK then you will surely have to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the nation of origin on goods and also on services that were utilised in that country. A competent vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid whilst helping smooth entry of imported goods to the UK.