Operating a business in Britain that requires importing goods can be stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization 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 into the UK you will then be charged import vat or customs duties. These duties need to be paid on the valuation of the goods and they are subject to vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is known as the ?ad valorem duty? and then there are 6 methods that can be used vatvalidation.com/vat to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you have chosen a certain way of the valuation of the products which you’ve imported into the UK.
In case you have imported goods into the UK originating from a eu country that has also collected vat tax from you prior to goods were dispatched to the UK then you have effectively paid double the amount tax on the same goods. If you are a vat registered trader in the UK then you can apply for vat reclaim to get the earlier amount back to your account. You will need to mention your vat number and give your vat certificate to the country of origin when you apply 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 capable vat agent that charges fees only on the volume of refunds that you get. This move will provide an incentive to your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and begin selling the same under vat invoices then you will need to maintain detailed accounts of the amount of vat paid and collected on them. You’ll have to mention these vat amounts in your vat returns that will need to be filed regularly in line with the vat scheme which you have chosen. Remember that 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 along with eu vat and uk vat rules so that there aren’t any miscalculations while importing goods to the UK.
If you are a vat registered trader in the United Kingdom 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 claim back vat amounts paid in the nation of origin on goods and also on services that have been utilized in that country. A competent 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.