Running a business in the UK that needs importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your organization as you can ensure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.
In case 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 products and are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is called the ?ad valorem duty? and then 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 certain method for the valuation of the goods that you have 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 before the 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 into your account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process might take between four to 8 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 provide an incentive for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on your goods and start 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 in your vat returns that will need to be filed regularly in line with the vat scheme that you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK ought to be rectified as soon as possible since 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 so that there aren’t any miscalculations while importing goods into the UK.
If you are a vat registered trader in the United Kingdom that must import goods into the UK then you’ll surely have to pay all applicable customs duties on the very same. However, you can also claim back vat amounts paid in the nation of origin on goods and even on services that were utilised in that country. A reliable vat agent will help you decipher vat customs rules and help you to get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.