Operating a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules can benefit your business as you’re able ensure that your purchase and sales deadlines are maintained as well as your costs are 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 goods and they are subject to 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 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 why you’ve chosen a particular method for the valuation on the goods that you’ve imported to the UK.
If you have imported goods to 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 the amount tax on the same goods. If you’re a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim to get the earlier amount back to your account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process could take between four to eight months to materialize, your costs will definitely get lowered. You should employ the services 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 start selling the same under vat invoices then you’ll have to maintain detailed accounts of the amount of vat paid and collected built in. You’ll 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 into the UK ought to be rectified as quickly 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 to ensure that there are no miscalculations while importing goods into the UK.
If you are 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 same. However, you may also reclaim vat amounts paid in the nation of origin on goods and also on services that were utilized 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.