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Learning about vat customs rules may benefit your business


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Running a business in the UK 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 make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.

If you import taxable goods to 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 be paid is known as the ?ad valorem duty? and there are 6 methods that can be used to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you have chosen a particular way of the valuation on the goods that you have imported into the UK.

If you have imported goods to 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 same goods. If you are a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim so as to get the earlier amount back into your bank account. You will need to http://vatcheck.com/vat mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although the refund process might take between four to 8 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 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 built in. You will have to mention these vat amounts during your vat returns that will need to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake by you 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 aren’t any miscalculations while importing goods to the UK.

If you are a vat registered trader in the United Kingdom that must import goods to the UK then you’ll surely need to pay all applicable customs duties on the same. However, you can also reclaim vat amounts paid in the country of origin on goods and even on services that have been utilised in that country. A reliable vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid whilst helping smooth entry of imported goods into the UK.