Operating a business in the UK that needs importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules may benefit your organization as you’re able 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 you will then be charged import vat or customs duties. These duties have 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. The amount of customs duty to be paid is known as the ?ad valorem duty? and there www.vatvalidation.com/vat are 6 methods that can be used to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you have chosen a certain way of the valuation of the goods that you’ve imported to the UK.
If you have imported goods to the UK originating from a eu country which has also collected vat tax from you prior to goods were dispatched to the UK then you’ve effectively paid double 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 bank account. You will need to mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although the refund process could take between four to eight months to materialize, your costs will certainly get lowered. You should employ the expertise of a competent vat agent that charges fees only on the volume of refunds that you receive. This move will give you an incentive to your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on your goods and begin selling the same under vat invoices then you will have to maintain detailed accounts of the amount 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 which you have chosen. You should remember that any genuine mistake by you while importing goods to the UK ought to be rectified as quickly as possible as 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 along with eu vat and uk vat rules so that there aren’t any miscalculations while importing goods into the UK.
If you’re 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 same. However, you may also claim back vat amounts paid in the country of origin on goods and also on services that were utilized in that country. A competent 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 into the UK.