Operating a business in the UK that needs importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules may benefit your organization 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 need 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 known as the ?ad valorem duty? and there are 6 methods you can use https://vatvalidation.com/vat 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 have imported into the UK.
If you have imported goods into 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 tax on the same goods. If you’re a vat registered trader in the United Kingdom then you can make an application for vat reclaim to get the earlier amount back to your account. You will have to mention your vat number and give your vat certificate to the country of origin whenever you file for a vat refund. Although refund process might take between four to 8 months to materialize, your costs will definitely 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 a reason to 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 need to maintain detailed accounts of the level of vat paid and collected on them. You’ll have to mention these vat amounts during your vat returns which will need to be filed regularly based on the vat scheme which you have chosen. Remember that that any genuine mistake on your part while importing goods to the UK ought to be rectified as soon as possible as it could 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 along with eu vat and uk vat rules to ensure that there aren’t any miscalculations while importing goods into the UK.
If you’re a vat registered trader in the UK that must import goods into the UK then you will surely need to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the nation of origin on goods and also on services that were utilised 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 to the UK.