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Learning about vat customs rules may benefit your organization


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Running a business in Britain that requires importing goods can be stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules may benefit your organization as you can ensure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.

If you import taxable goods into the UK then you will be charged import vat or customs duties. These duties need to be paid on the value of the products and are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is called the ?ad valorem duty? and 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 why you’ve chosen vatcheck a particular way of the valuation of the goods that you have imported into the UK.

In case you have imported goods to the UK originating from a eu country which has also collected vat tax from you prior to 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 United Kingdom you’ll be able to apply for vat reclaim so as to get the previous amount back into your bank account. You will have to mention your vat number and provide your vat certificate to the country of origin when you file for a vat refund. Although refund process could take between four to eight months to materialize, your costs will certainly get lowered. You should 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 to your vat agent while rewarding you with lots of successful vat refunds.

Once you’ve paid vat customs on the goods and start selling precisely the same under vat invoices then you will have to maintain detailed accounts of the amount of vat paid and collected built in. You’ll have to mention these vat amounts during 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 ought to be rectified as soon 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 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 to the UK.

If you are a vat registered trader in the UK that must import goods into the UK then you will surely have to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the nation of origin on goods and also on services that have been utilized in that country. A competent vat agent can 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.