Operating 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 about these rules can benefit your business as you can ensure 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 need 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 known as the ?ad valorem duty? and there are 6 methods that can be used www.vatvalidation.com/vat to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you’ve chosen a certain way of the valuation of the products which you’ve imported to the UK.
In case you have imported goods to the UK from a eu country which has also collected vat tax from you prior to 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 then you can apply for vat reclaim so as to get the earlier amount back to your account. You will need to mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although refund process might take between four to eight months to materialize, your costs will definitely get lowered. You should employ the expertise of a competent vat agent that charges fees only on the volume of refunds that you get. This move will give you a reason for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on your goods and start 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 which will need to be filed regularly in line with the vat scheme which you have chosen. You should remember that any genuine mistake by you while importing goods into the UK ought to 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 are no miscalculations while importing goods to the UK.
If you are a vat registered trader in the UK that must import goods to the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you may also claim back vat amounts paid in the nation of origin on goods and also on services that have been utilised in that country. A competent vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.