Understanding vat customs rules may benefit your organization

Operating a business in the UK that needs importing goods is usually 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 can ensure that your purchase and sales deadlines are maintained and your costs are 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 need to be paid on the value of 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 that can be used vatregistrationnumber 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 on the products which you have imported into the UK.

If you have imported goods to the UK originating from a eu country that has also collected vat tax from you prior to goods were dispatched to the UK then you’ve effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK then you can apply for vat reclaim to get the earlier amount back to your bank 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 might 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 provide an incentive for your vat agent while rewarding you with many 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 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 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 must 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 are a vat registered trader in the UK 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 claim back vat amounts paid in the nation of origin on goods and even 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 whilst helping smooth entry of imported goods to the UK.