Operating a business in Britain that needs importing goods can be stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you can 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 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 there vatvalidation.com/vat are 6 methods that can be used 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 particular method for the valuation on the goods that you’ve imported to the UK.
If you have imported goods into the UK originating from a eu country which 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 United Kingdom then you can make an application for vat reclaim so as to get the earlier amount back into your account. You will need 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 eight months to materialize, your costs will definitely get lowered. You should employ the expertise of a competent vat agent that charges fees only on the volume of refunds that you get. This move will provide a reason for 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’ll have to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts during your vat returns which will need to be filed regularly in line with the vat scheme which you have chosen. Remember that that any genuine mistake by you while importing goods into the UK should be rectified as soon 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 must have complete knowledge on customs and excise rules as well as eu vat and uk vat rules so that there are no miscalculations while importing goods into the UK.
If you are 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 reclaim vat amounts paid in the country of origin on goods and even on services that were utilised in that country. A reliable 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.