Operating a business in the UK that requires importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules may benefit your organization as you’re able ensure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.
If 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. How much customs duty to generally be paid is called the ?ad valorem duty? and then there are 6 methods you can use http://vatvalidation.com/vat to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you have chosen a particular method for the valuation of the goods that you’ve imported to the UK.
In case you have imported goods to the UK from a eu country that has also collected vat tax from you prior to goods were dispatched to the UK then you’ve 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 into 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 could take between four to eight 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 lots of successful vat refunds.
Once you have paid vat customs on the goods and begin selling precisely the same under vat invoices then you’ll need to maintain detailed accounts of the amount of vat paid and collected built in. You will have to mention these vat amounts in your vat returns that will need to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake on your part while importing goods into the UK should 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 must have complete knowledge on customs and excise rules along with eu vat and uk vat rules so that there aren’t any miscalculations while importing goods to the UK.
If you’re a vat registered trader in the United Kingdom that needs to import goods into the UK then you will surely have to pay all applicable customs duties on the same. However, you may also reclaim vat amounts paid in the country of origin on goods and also on services that have been utilized in that country. A competent vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid whilst helping smooth entry of imported goods to the UK.