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Learning about vat customs rules may benefit your organization


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Operating a business in the UK 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 can benefit your organization as you can 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 http://vatcontrol.com/vat the products and they are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to generally 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 have to provide documentary proof to hmrc vat department as to why you have chosen a particular way of the valuation on the goods that you have imported into 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’ve effectively paid double tax on the same goods. If you’re a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim to get the earlier amount back to your bank account. You will have to mention your vat number and give your vat certificate to the country of origin whenever you file for a vat refund. Although refund process could take between four to eight months to materialize, your costs will definitely 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 for your vat agent while rewarding you with many successful vat refunds.

Once you have paid vat customs on your goods and begin 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’ll have to mention these vat amounts during your vat returns that will need 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 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 into the UK then you’ll surely need to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the country of origin on goods and even on services that were utilised in that country. A competent vat agent will 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.