Understanding vat customs rules can benefit your organization

Running a business in the UK that requires 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 organization 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 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 are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is known as the ?ad valorem duty? and there are 6 methods you can use www.vatregistrationnumber.com 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 of the products which you have imported to the UK.

In case you have imported goods to the UK from a eu country that has also collected vat tax from you prior to 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 into your bank account. You will need to mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although 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 amount of refunds that you receive. This move will provide a reason for your vat agent while rewarding you with lots of successful vat refunds.

Once you have paid vat customs on the goods and begin selling precisely the same under vat invoices then you will need to maintain detailed accounts of the level of vat paid and collected built in. You will have to mention these vat amounts during your vat returns that 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 to the UK ought to be rectified as soon as possible since 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 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 claim back vat amounts paid in the nation of origin on goods and even on services that were 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 while also helping smooth entry of imported goods into the UK.