Understanding vat customs rules may benefit your organization

Running a business in the UK that needs importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules may 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.If 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 valuation of https://vatcontrol.com/vat the products and are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is known as the ?ad valorem duty? and then there are 6 methods you can use to arrive at the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you have chosen a particular method for the valuation on the products which you have imported to the UK.

If you have imported goods to the UK from a eu country that has also collected vat tax from you before the goods were dispatched to the UK then you have effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK you’ll be able to make an application for vat reclaim 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 apply for a vat refund. Although the refund process could 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 volume of refunds that you get. This move will provide a reason to your vat agent while rewarding you with many successful vat refunds.

Once you’ve paid vat customs on your goods and start selling precisely the same under vat invoices then you will have 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 which will need to be filed regularly in line with the vat scheme that you have chosen. Remember that that any genuine mistake on your part 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 as well as 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 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 have been utilised in that country. A reliable vat agent can help you decipher vat customs rules and help you to get back all excess vat previously paid whilst helping smooth entry of imported goods to the UK.