Running a business in Britain that requires importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you can make sure 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 then you will be charged import vat or customs duties. These duties need to be paid on the value of the goods and are governed by 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 there https://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 why you have chosen a particular method for the valuation on the goods that you have imported to the UK.
In case you have imported goods into the UK from a eu country which has also collected vat tax from you prior to goods were dispatched to the UK then you have effectively paid double tax on the same goods. If you’re a vat registered trader in the United Kingdom then you can make an application for vat reclaim so as to get the earlier amount back into your bank account. You will need to mention your vat number and provide your vat certificate to the country of origin whenever you file for a vat refund. Although 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 a reason to your vat agent while rewarding you with many successful vat refunds.
Once you’ve 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 built in. You will have to mention these vat amounts in your vat returns which will have to be filed regularly based on the vat scheme that you have chosen. Remember that that any genuine mistake by you while importing goods to the UK ought to 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 must have complete knowledge on customs and excise rules along with eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.
If you are a vat registered trader in the UK that must import goods into the UK then you will surely need to pay all applicable customs duties on the same. However, you can also claim back vat amounts paid in the country of origin on goods and even on services that have been utilised in that country. A competent vat agent can 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.