Operating a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your organization as you’re able ensure 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 have 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 known as the ?ad valorem duty? and there are 6 methods you can use 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’ve chosen a particular method for the valuation on the goods that 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 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 UK then you can apply for vat reclaim so as to get the previous amount back into your bank account. You will have to mention your vat number and give your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process might take between four to eight 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 amount of refunds that you receive. This move will give you a reason for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and begin selling precisely the same under vat invoices then you will 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 based on the vat scheme that you have chosen. You should remember that any genuine mistake on your part while importing goods to the UK should be rectified as soon 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 should have complete knowledge on customs and excise rules along with eu vat and uk vat rules to ensure that there aren’t any 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 will surely need to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the country of origin on goods and even on services that were utilized in that country. A reliable vat agent can help you decipher vat customs rules and help you to get back all excess vat previously paid whilst helping smooth entry of imported goods to the UK.