Running a business in the UK that requires importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules may benefit your business 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 into the UK you will then be charged import vat or customs duties. These duties need to be paid on the value of the products and they are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is called the ?ad valorem duty? and there are 6 methods that can be used 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 certain way of the valuation of the goods that you’ve imported into 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 same goods. If you are a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim so as to get the previous 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 file for a vat refund. Although refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You ought to employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you get. This move will provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and start selling precisely the same under vat invoices then you’ll need to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts in your vat returns that will have to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake on your part 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 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 to the UK.
If you’re a vat registered trader in the United Kingdom 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 claim back vat amounts paid in the nation of origin on goods and even on services that were utilised 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 while also helping smooth entry of imported goods to the UK.