Running 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 all 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.
In case 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 valuation of the products 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 called 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 need to provide documentary proof to hmrc vat department as to the reasons 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 before the 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 you’ll be able to apply for vat reclaim so as to get the earlier amount back into 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 8 months to materialize, your costs will certainly get lowered. You should employ the services of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will give you a reason 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’ll need 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 which will need 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 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 must 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 to the UK.
If you are a vat registered trader in the UK that needs to import goods to the UK then you will surely have to pay all applicable customs duties on the very 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 reliable vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.