Running a business in Britain that needs importing goods is usually stressful unless you know about vat customs rules imposed from 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 and your cost is kept to the minimum.
In case you import taxable goods to the UK you will then be charged import vat or customs duties. These duties have to be paid on the valuation of the goods and they are subject to 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 vatvalidation.com/vat are 6 methods that can be used to reach 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 on the goods that you have imported into the UK.
If you have imported goods into the UK originating from a eu country which has also collected vat tax from you prior to goods were dispatched to the UK then you’ve effectively paid double tax on the same goods. If you’re a vat registered trader in the UK then you can 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 whenever you apply for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will definitely get lowered. You ought to employ the services of a capable vat agent that charges fees only on the volume of refunds that you receive. This move will provide a reason for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and begin selling precisely the same under vat invoices then you will have to maintain detailed accounts of the level of vat paid and collected built in. You’ll have to mention these vat amounts during your vat returns that will need to be filed regularly in line with the vat scheme which you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK should be rectified as soon as possible since it may 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 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 to the UK then you will surely have to pay all applicable customs duties on the same. However, you can also reclaim vat amounts paid in the nation 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 whilst helping smooth entry of imported goods into the UK.