Understanding vat customs rules can benefit your business

Operating a business in the UK that requires importing goods can be stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs vatcontrol.com/vat department. Learning about these rules may benefit your organization as you can 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 then you will be charged import vat or customs duties. These duties have 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 be paid is known as the ?ad valorem duty? and there are 6 methods you can use to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you’ve chosen a particular method for the valuation on the products which you’ve imported to the UK.

If you have imported goods to the UK originating 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 the amount tax on the very same goods. If you are a vat registered trader in the UK then you can apply for vat reclaim so as to get the earlier amount back to your bank account. You will have to mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You should employ the services of a capable 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 lots of successful vat refunds.

Once you have paid vat customs on the goods and start selling precisely the same under vat invoices then you’ll 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 have to be filed regularly based on the vat scheme which you have chosen. Remember that that any genuine mistake on your part while importing goods to the UK should be rectified as quickly as possible since 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 to ensure that there aren’t any miscalculations while importing goods to the UK.

If you are a vat registered trader in the UK that needs to import goods into the UK then you will surely have to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the nation of origin on goods and also on services that have been utilized 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 while also helping smooth entry of imported goods into the UK.