Running a business in the UK that needs 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 may 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 to the UK you will then be charged import vat or customs duties. These duties have to be paid on the value of the goods and are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is known as the ?ad valorem duty? and then there https://vatvalidation.com/vat are 6 methods you can use 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 particular way of the valuation on the goods that you’ve imported into the UK.
In case you have imported goods into the UK from a eu country that has also collected vat tax from you prior to goods were dispatched to the UK then you’ve effectively paid double the amount tax on the same goods. If you are a vat registered trader in the United Kingdom then you can apply for vat reclaim to get the earlier amount back to your account. You will have to mention your vat number and give your vat certificate to the country of origin when you file for a vat refund. Although refund process could take between four to eight months to materialize, your costs will certainly get lowered. You ought to employ the services of a capable vat agent that charges fees only on the amount of refunds that you receive. This move will give you an incentive to your vat agent while rewarding you with many successful vat refunds.
Once you’ve paid vat customs on the goods and start 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 will have to mention these vat amounts in 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 on your part while importing goods to 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 must have complete knowledge on customs and excise rules as well as eu vat and uk vat rules to ensure that there aren’t any miscalculations while importing goods into the UK.
If you’re a vat registered trader in the United Kingdom that must import goods to the UK then you’ll surely have to pay all applicable customs duties on the same. However, you may also reclaim vat amounts paid in the nation of origin on goods and also on services that were utilised 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 into the UK.