Learning about vat customs rules may benefit your organization

Operating a business in Britain that needs importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules may benefit your business as you can ensure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.

If 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 valuation 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 called the ?ad valorem duty? and then there are 6 methods that can be used to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you have chosen vat check a certain method for the valuation of the goods that 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 prior to goods were dispatched to the UK then you have effectively paid double tax on the very same goods. If you are a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim so as to get the previous amount back to your bank account. You will need to mention your vat number and give your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process could take between four to 8 months to materialize, your costs will definitely get lowered. You should employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will provide a reason for your vat agent while rewarding you with many successful vat refunds.

Once you’ve paid vat customs on your goods and begin selling the same under vat invoices then you will have 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 in line with the vat scheme which you have chosen. Remember that 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 along with eu vat and uk vat rules to ensure that there are no miscalculations while importing goods to the UK.

If you are a vat registered trader in the UK that needs to import goods to the UK then you will surely have to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the country of origin on goods and even on services that have been utilised in that country. A reliable vat agent will 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.