Understanding vat customs rules may benefit your business

Operating a business in the UK that needs 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 business as you’re able make sure that your purchase and sales deadlines are maintained as well as your costs are 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 https://vatcontrol.com/vat the products and they 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 have to provide documentary proof to hmrc vat department as to why you’ve chosen a certain way of the valuation of the goods that you have imported into the UK.

In case you have imported goods to the UK from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double tax on the very same goods. If you’re a vat registered trader in the UK then you can make an application for vat reclaim so as to get the previous amount back to your account. You will have to mention your vat number and give your vat certificate to the country of origin whenever you file for a vat refund. Although refund process might take between four to 8 months to materialize, your costs will definitely get lowered. You ought to employ the services of a competent vat agent that charges fees only on the volume of refunds that you get. This move will give you an incentive to your vat agent while rewarding you with many successful vat refunds.

Once you’ve paid vat customs on your goods and begin selling the same under vat invoices then you will need to maintain detailed accounts of the level of vat paid and collected on them. 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 that you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK ought to be rectified as quickly 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 must have complete knowledge on customs and excise rules along with eu vat and uk vat rules so that there aren’t any 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 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 also 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 whilst helping smooth entry of imported goods to the UK.