Learning about vat customs rules may benefit your organization

Running a business in Britain that requires importing goods can be stressful unless you know all about vat customs rules imposed from 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 to the UK you will then be charged import vat or customs duties. These duties need 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 be paid is known as the ?ad valorem duty? and then there http://vatvalidation.com/vat 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 the reasons you have chosen a certain method for the valuation of the goods that you’ve 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 have effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK you’ll be able to make an application for vat reclaim so as to get the earlier amount back into your 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 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 competent vat agent that charges fees only on the volume of refunds that you receive. 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 precisely the same under vat invoices then you will have to maintain detailed accounts of the level of vat paid and collected on them. You’ll have to mention these vat amounts in your vat returns which will need 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 should 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 must have complete knowledge on customs and excise rules along with eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.

If you’re a vat registered trader in the United Kingdom that must import goods into the UK then you’ll surely have 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 even on services that have been 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 into the UK.