Running a business in the UK that needs importing goods is usually stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning 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.
If 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 goods and they are governed by 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 then there www.vatvalidation.com/vat are 6 methods you can use to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a certain method for the valuation on the goods that you have imported to the UK.
If you have imported goods into the UK from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you have effectively paid double tax on the very same goods. If you’re a vat registered trader in the UK you’ll be able to make an application for vat reclaim to get the previous amount back to your bank account. You will need to mention your vat number and provide your vat certificate to the country of origin when you file for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You should employ the services of a capable vat agent that charges fees only on the amount of refunds that you receive. This move will give you a reason for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and begin selling the same under vat invoices then you’ll have to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts during your vat returns that will have to be filed regularly based on the vat scheme that you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK ought to be rectified as quickly 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 are no miscalculations while importing goods to the UK.
If you’re a vat registered trader in the UK that needs to import goods into the UK then you will surely need 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 even on services that have been 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 whilst helping smooth entry of imported goods to the UK.