Learning about vat customs rules may benefit your organization

Operating a business in Britain that needs importing goods can be stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs http://vatcontrol.com/vat department. Learning all about these rules can benefit your business 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 valuation of the products and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is called 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 have chosen a certain way of the valuation of the goods that you've 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 tax on the same goods. If you are a vat registered trader in the United Kingdom then you can apply for vat reclaim to get the earlier amount back to your account. You will have to mention your vat number and give 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 ought to employ the expertise of a capable vat agent that charges fees only on the amount of refunds that you get. 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 begin selling the same under vat invoices then you'll need to maintain detailed accounts of the amount of vat paid and collected on them. You'll have to mention these vat amounts in your vat returns that will have to be filed regularly in line with 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 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 as well as eu vat and uk vat rules so that there are no miscalculations while importing goods into 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 even on services that were utilised in that country. A reliable vat agent will 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 to the UK.