Understanding vat customs rules can benefit your business

Operating a business in Britain that needs importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you can 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 then you will 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. How much customs duty to generally 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’ve chosen a certain method for the valuation on the products which you’ve imported to the UK.

If you have imported goods into the UK originating from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you have effectively paid double tax on the very same goods. If you’re a vat registered trader in the UK then you can 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 whenever you file 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 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 lots of successful vat refunds.

Once you have paid vat customs on the goods and begin selling precisely the same under vat invoices then you will need to maintain detailed accounts of the level of vat paid and collected built in. You will have to mention these vat amounts in your vat returns which will need to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake by you while importing goods to the UK should be rectified as soon as possible since 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 as well as eu vat and uk vat rules so that there aren’t any miscalculations while importing goods into the UK.

If you’re a vat registered trader in the United Kingdom that needs to import goods into the UK then you will surely need to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the country of origin on goods and also on services that have been utilised in that country. A competent vat agent can 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 into the UK.