Learning about vat customs rules can benefit your business

Running a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules can benefit your business as you’re able ensure that your purchase and sales deadlines are maintained and 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 goods and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is known as the ?ad valorem duty? and there www.vatvalidation.com/vat are 6 methods that can be used to arrive at 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 have imported to the UK.

In case you have imported goods into the UK from a eu country which 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 same goods. If you are a vat registered trader in the United Kingdom then you can apply for vat reclaim so as to get the previous amount back to your account. You will need to mention your vat number and give your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process could take between four to eight months to materialize, your costs will definitely get lowered. You should employ the expertise of a competent vat agent that charges fees only on the volume of refunds that you get. This move will provide an incentive to your vat agent while rewarding you with lots of successful vat refunds.

Once you have paid vat customs on the goods and start selling precisely the same under vat invoices then you’ll have to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts in your vat returns which will have to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake on your part while importing goods into the UK should 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 must 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 to the UK.

If you are a vat registered trader in the United Kingdom that must import goods into the UK then you’ll surely have to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the country 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 get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.