Learning about vat customs rules can benefit your organization

Running a business in Britain that requires importing goods can be stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your organization as you're able make sure that your purchase and sales deadlines are maintained as well as your cost is 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 value of the goods and are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is called the ?ad valorem duty? and then there are 6 methods you can use to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you've chosen vat check a certain way of the valuation on the goods that you have imported into the UK.

In case you have imported goods into the UK originating 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 very same goods. If you are a vat registered trader in the UK you'll be able to make an application for vat reclaim to get the earlier 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 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 competent 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 lots of successful vat refunds.

Once you've paid vat customs on your goods and begin 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'll have to mention these vat amounts in your vat returns that will need to be filed regularly in line with the vat scheme which you have chosen. Remember that that any genuine mistake by you while importing goods into the UK ought to 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 should have complete knowledge on customs and excise rules along with 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 to the UK then you will surely need to pay all applicable customs duties on the same. However, you may also reclaim vat amounts paid in the country of origin on goods and also on services that were utilised in that country. A reliable vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.