Starting a trading or manufacturing business in the UK will proceed seamlessly only when you learn about hm customs and excise duties and work out all your payments in time http://vatvalidation.com/vat/. Most duties and taxes in Britain are managed by hm revenue and customs or hmrc, which was established in 2005 following the merger of hm customs department together with the revenue department.
If your business involves importing services or goods from member eu states which have embraced vat then there are certain vat rules that need to be followed not only in the nation of origin but also in Britain . If you want to go in for vat refund for vat already paid in the original country or if you wish to enjoy other advantages offered by vat then you will have to turn into a vat registered trader. In the UK this can be achieved once you touch the vat threshold figure of £70,000 in taxable sales.
Once you import services or goods into the UK then you’ll also have to pay the appropriate customs duties according to the nature of your goods. If you intend to import alcohol or cigarettes and tobacco products then you will need to pay excise duty to the hm customs and excise department. There are 14,000 classifications furnished by the hmrc vat department and customs, excise, import vat and sales vat duties will depend on this classification.
In case you have already paid vat on services or goods in a foreign country before importing it into the UK then after paying all of your duties, you can still claim the vat paid in the other country by furnishing all the required details. To be able to successfully get a vat reclaim, understanding of uk vat and eu vat rules is essential. Whilst you can easily get all the knowledge from the hm customs and excise website you can still utilize the services of experienced customs duty and vat agent. This type of agent may help pay your customs and excise duties while also preparing your vat returns in the stipulated time. A broker with offices in other countries would be ideal since you could also go for vat refunds in countries where you may have already paid vat.
Once you pay all your duties and manage to reclaim vat successfully, you’ll be able to achieve ideal costs for the services and products, thus increasing the efficiency of your respective business. During times of competition avoiding double taxation would be a huge asset while paying your customs and excise duties dutifully will keep yourself the right side of the law. Anyway, the money which you pay as import duties and vat is used by the excise and customs department for public services. With technology close at hand, you can now pay most of your taxes including vat online by registering your enterprise at the hmrc website.
Customs and excise duties together with collection of vat forms an essential revenue stream to the government of the UK. In case you have started an organization in Britain or have a manufacturing plant that has to import capital goods or spares from other countries including eu countries then you’ll need to learn about hm customs and excise duties in order to quickly give the correct amount of applicable duties on your imports.