Understanding vat customs rules can benefit your organization

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’re able make sure that your purchase and sales deadlines are maintained and 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 valuation of the goods and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to 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 have to provide documentary proof to hmrc vat department as to the reasons you’ve chosen http://vatcheck.com a certain way of the valuation of the products which you’ve imported to the UK.

If 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 have effectively paid double the amount tax on the very same goods. If you are a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim so as to get the previous amount back to your account. You will need to mention your vat number and provide 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 competent vat agent that charges fees only on the volume of refunds that you get. This move will give you 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 the same under vat invoices then you will have to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts in your vat returns that 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 to the UK should 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 along with eu vat and uk vat rules so that there aren’t any miscalculations while importing goods into the UK.

If you are a vat registered trader in the United Kingdom that must import goods into the UK then you’ll surely need to pay all applicable customs duties on the same. However, you may also reclaim vat amounts paid in the nation of origin on goods and even on services that were utilized in that country. A reliable vat agent will 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.