Learning about vat customs rules may benefit your organization

Running a business in Britain that requires importing goods can be stressful unless you know about vat customs rules imposed from 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 to the UK you will then be charged import vat or customs duties. These duties have to be paid on the value of the products and they are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is known as the ?ad valorem duty? and there are 6 methods you can use to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you’ve chosen vat check a certain way of the valuation of the products which you have imported into the UK.

If you have imported goods to the UK from a eu country that has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double tax on the very same goods. If you’re a vat registered trader in the UK then you can apply 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 could take between four to eight months to materialize, your costs will definitely get lowered. You ought to employ the expertise of a capable vat agent that charges fees only on the amount of refunds that you get. This move will give you an incentive for your vat agent while rewarding you with many successful vat refunds.

Once you’ve paid vat customs on your 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 during your vat returns that will need to be filed regularly in line with the vat scheme which you have chosen. You should remember that any genuine mistake by you while importing goods into the UK should be rectified as soon 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 must have complete knowledge on customs and excise rules as well as eu vat and uk vat rules so that there are no miscalculations while importing goods into the UK.

If you are a vat registered trader in the United Kingdom that must import goods to the UK then you will 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 also on services that have been utilised in that country. A reliable vat agent will help you decipher vat customs rules and help you to get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.