Running a business in Britain that requires importing goods can be 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 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 you will then be charged import vat or customs duties. These duties have to be paid on the value of the products and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is called the ?ad valorem duty? and then 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 certain method for the valuation of the products which you have imported into the UK.
If you have imported goods into the UK originating 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 very same goods. If you are a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim to get the previous 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 apply for a vat refund. Although refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You should employ the expertise of a capable vat agent that charges fees only on the volume of refunds that you receive. This move will provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on your goods and start selling precisely the same under vat invoices then you will have to maintain detailed accounts of the amount of vat paid and collected built in. You’ll have to mention these vat amounts during your vat returns which will have to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake on your part while importing goods to the UK should 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 aren’t any miscalculations while importing goods into the UK.
If you are a vat registered trader in the United Kingdom that needs to import goods into the UK then you’ll surely have to pay all applicable customs duties on the very same. However, you can 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 to get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.