Learning about vat customs rules can benefit your organization

Operating a business in Britain that needs importing goods can be stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules may benefit your organization as you’re able make sure that your purchase and sales deadlines are maintained and your cost is 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 valuation of vatcontrol.com/vat the goods and they are subject to vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is known as the ?ad valorem duty? and then there are 6 methods you can use to reach the amount of this duty. You will have 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 into the UK.

If you have imported goods to the UK from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double tax on the same goods. If you’re a vat registered trader in the UK you’ll be able to apply for vat reclaim so as to get the previous amount back to your account. You will have to mention your vat number and give 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 certainly get lowered. You should employ the services of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will provide a reason to your vat agent while rewarding you with many successful vat refunds.

Once you’ve paid vat customs on your goods and start selling precisely the same under vat invoices then you will need to maintain detailed accounts of the amount of vat paid and collected built in. You’ll have to mention these vat amounts in your vat returns which 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 should be rectified as soon 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 along with eu vat and uk vat rules so 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 to the UK then you’ll surely have to pay all applicable customs duties on the same. However, you can also claim back vat amounts paid in the country of origin on goods and also on services that were 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.