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Learning about vat customs rules may benefit your organization


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Operating a business in the UK that needs importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your business as you’re able ensure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.

If you import taxable goods into the UK you will then be charged import vat or customs duties. These duties have to be paid on the valuation of the products and they 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 then there are 6 methods you can use http://vatvalidation.com/vat to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a particular method for the valuation on the goods that you’ve imported to the UK.

If 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 tax on the same goods. If you are a vat registered trader in the UK you’ll be able to make an application for vat reclaim to get the earlier amount back to your account. You will need 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 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 get. This move will give you an incentive for your vat agent while rewarding you with many successful vat refunds.

Once you have paid vat customs on the goods and start selling the same under vat invoices then you will have to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts during your vat returns which will have to be filed regularly based on 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 may 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 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 can also claim back vat amounts paid in the nation of origin on goods and even on services that were utilised 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 while also helping smooth entry of imported goods into the UK.