Learning about vat customs rules may benefit your business

Operating 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 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.

In case you import taxable goods into the UK then you will be charged import vat or customs duties. These duties have to be paid on the value of the goods and they are governed by 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 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 a particular method for the valuation of the products which you have imported to the UK.

In case you have imported goods into the UK from a eu country that has also collected vat tax from you before the goods were dispatched to the UK then you have effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK then you can make an application for vat reclaim to get the previous amount back to your bank account. You will have to vat check mention your vat number and give your vat certificate to the country of origin when you file for a vat refund. Although refund process could take between four to eight months to materialize, your costs will certainly 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 lots of successful vat refunds.

Once you’ve paid vat customs on your goods and begin selling the same under vat invoices then you’ll 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 that will have to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake on your part while importing goods to the UK ought to be rectified as quickly as possible as 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 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 must import goods to the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the nation of origin on goods and also 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.