Understanding vat customs rules can benefit your business

Operating a business in the UK that needs importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you can ensure 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 the products and are subject to vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally 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 have chosen vatcheck.com a certain way of the valuation of the goods that you’ve imported to the UK.

In case you have imported goods into the UK from a eu country that has also collected vat tax from you prior to goods were dispatched to the UK then you have effectively paid double 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 so as to get the earlier amount back into your account. You will need to mention your vat number and provide your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process could take between four to 8 months to materialize, your costs will definitely get lowered. You should employ the expertise of a capable vat agent that charges fees only on the volume 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 have 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 on them. You will 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 on your part while importing goods into the UK ought to be rectified as quickly as possible as 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 along with 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 must import goods into the UK then you’ll surely need to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the nation of origin on goods and even on services that were utilized 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 into the UK.