Understanding vat customs rules may benefit your business

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 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 value of http://vatcontrol.com/vat the products and they are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is known as the ?ad valorem duty? and then there are 6 methods that can be used to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a particular method for the valuation of the products which you’ve imported into the UK.

If you have imported goods into 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 tax on the same goods. If you are a vat registered trader in the United Kingdom then you can make an application for vat reclaim to get the previous amount back into your bank account. You will need to mention your vat number and give 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 should employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will give you an incentive to your vat agent while rewarding you with lots of successful vat refunds.

Once you’ve paid vat customs on your goods and begin selling 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 that will have to be filed regularly based on the vat scheme that 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 may 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 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 to the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the country of origin on goods and even on services that were utilized in that country. A competent 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.