Operating a business in Britain 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 business as you can ensure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.
If you import taxable goods into the UK then you will be charged import vat or customs duties. These duties need to be paid on the valuation of the products and they are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is known as the ?ad valorem duty? and there vatvalidation.com/vat are 6 methods you can use to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you have chosen a particular method for the valuation on the products which you’ve imported to the UK.
In case you have imported goods into the UK originating from a eu country that has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double tax on the very same goods. If you are a vat registered trader in the UK you’ll be able to make an application for vat reclaim so as to get the previous amount back to your bank account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you file for a vat refund. Although the 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 get. This move will provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and start selling precisely the same under vat invoices then you’ll have to maintain detailed accounts of the level of vat paid and collected on them. You’ll have to mention these vat amounts during your vat returns that will have 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 soon 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 as well as eu vat and uk vat rules so that there are no miscalculations while importing goods into the UK.
If you are a vat registered trader in the UK that needs to import goods to the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the country of origin on goods and even on services that have been utilized in that country. A reliable vat agent will 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.