Understanding vat customs rules can benefit your organization

Running a business in Britain that requires importing goods is usually stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules may benefit your business as you can make sure that your purchase and sales deadlines are maintained and your cost is 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 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 then there are 6 methods that can be used to arrive at the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you’ve chosen www.vatcheck.com a particular method for the valuation of the goods that you have imported to the UK.

If you have imported goods into the UK from a eu country that 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’re a vat registered trader in the UK you’ll be able to apply 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 whenever you apply for a vat refund. Although the refund process might 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 amount of refunds that you receive. This move will provide an incentive for your vat agent while rewarding you with many successful vat refunds.

Once you’ve 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 need to be filed regularly based on the vat scheme which 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 could be construed as evasion of customs duties and would invoke strict action including penalties from the hmrc department. Your vat agent should 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’re 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 country of origin on goods and even on services that were 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 whilst helping smooth entry of imported goods into the UK.