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Learning about vat customs rules may benefit your business


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Operating a business in Britain that needs importing goods can be stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules may benefit your organization as you’re able make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.

In case you import taxable goods to the UK then you will be charged import vat or customs duties. These duties have to be paid on the value of the goods and are governed by 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 that can be used http://vatregistrationnumber.com to reach 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 products which you’ve imported to the UK.

If 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 have effectively paid double tax on the very same goods. If you are 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 give your vat certificate to the country of origin when you file for a vat refund. Although the refund process could take between four to eight months to materialize, your costs will certainly get lowered. You should employ the services of a capable vat agent that charges fees only on the volume of refunds that you receive. This move will provide a reason for 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 will need to maintain detailed accounts of the amount of vat paid and collected on them. You’ll have to mention these vat amounts during your vat returns that will have to be filed regularly based on the vat scheme which you have chosen. Remember that that any genuine mistake by you while importing goods to 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 to ensure that there aren’t any 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 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 even on services that were utilized in that country. A competent vat agent can 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.