Understanding vat customs rules can benefit your organization

Running a business in Britain that requires importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules may benefit your business as you’re able make sure that your purchase and sales deadlines are maintained as well as 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 valuation of http://vatcontrol.com/vat the goods and 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 there 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 the reasons you have chosen a particular way of the valuation on the products which you have imported into 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 same goods. If you are a vat registered trader in the UK then you can make an application for vat reclaim to get the previous amount back into your account. You will need to mention your vat number and give your vat certificate to the country of origin when you apply for a vat refund. Although the refund process might take between four to eight months to materialize, your costs will certainly get lowered. You ought to employ the services of a capable vat agent that charges fees only on the amount of refunds that you get. This move will provide an incentive to your vat agent while rewarding you with many successful vat refunds.

Once you’ve paid vat customs on the goods and start selling precisely the same under vat invoices then you’ll have to maintain detailed accounts of the amount of vat paid and collected built in. You’ll have to mention these vat amounts during your vat returns which will need 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 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 as well as eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.

If you are a vat registered trader in the UK that needs to import goods to the UK then you will surely need to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the country of origin on goods and even on services that were utilized in that country. A reliable 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 into the UK.