Understanding vat customs rules can benefit your organization

Operating a business in the UK that requires 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 business as you can 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 need to be paid on the valuation 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 called the ?ad valorem duty? and there are 6 methods that can be used to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you have chosen www.vatcheck.com a certain way of the valuation on the goods that you’ve imported into the UK.

If you have imported goods into the UK from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double the amount 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 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 when you file for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You ought to employ the expertise of a capable vat agent that charges fees only on the volume of refunds that you get. This move will give you a reason to your vat agent while rewarding you with many successful vat refunds.

Once you’ve paid vat customs on the 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 will have to mention these vat amounts during your vat returns which will need to be filed regularly based on the vat scheme that you have chosen. You should remember that any genuine mistake by you while importing goods into the UK ought to 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 along with 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 UK that must import goods into the UK then you will surely have 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 even on services that have been utilised in that country. A competent 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 to the UK.