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 business as you can make sure 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 then you will be charged import vat or customs duties. These duties have 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. The amount of customs duty to generally be paid is called 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’ve chosen a certain way of the valuation of the goods that you’ve imported into the UK.
If you have imported goods to 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’ve effectively paid double the amount tax on the same goods. If you are a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim so as to get the previous amount back to your bank account. You will have to mention your vat number and give your vat certificate to the country of origin when you apply for a vat refund. Although refund process could take between four to 8 months to materialize, your costs will certainly get lowered. You ought to employ the expertise of a capable vat agent that charges fees only on the volume of refunds that you get. This move will give you an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on the goods and begin 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 that will need to be filed regularly based on the vat scheme that you have chosen. You should remember that any genuine mistake on your part while importing goods to 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 aren’t any miscalculations while importing goods into the UK.
If you’re a vat registered trader in the United Kingdom that must import goods into the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the country of origin on goods and also on services that were utilized 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 into the UK.