Understanding vat customs rules can benefit your organization

Running 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 https://vatcontrol.com/vat department. Learning all about these rules can benefit your business 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 into 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 are subject to 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 there are 6 methods that can be used 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 particular way of the valuation on the products which you’ve imported into the UK.

In case you have imported goods into the UK from a eu country which has also collected vat tax from you prior to goods were dispatched to the UK then you have effectively paid double tax on the same goods. If you are a vat registered trader in the UK you’ll be able to make an application 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 file for a vat refund. Although the refund process might 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 give you a reason to your vat agent while rewarding you with many successful vat refunds.

Once you have paid vat customs on the goods and start selling precisely the same under vat invoices then you will need to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts in your vat returns that will need to be filed regularly based on the vat scheme that you have chosen. You should remember that any genuine mistake on your part while importing goods to the UK should be rectified as soon 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 so that there are no miscalculations while importing goods to the UK.

If you are a vat registered trader in the United Kingdom that must import goods into the UK then you’ll surely need to pay all applicable customs duties on the same. However, you may also reclaim vat amounts paid in the country of origin on goods and also 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 while also helping smooth entry of imported goods into the UK.