Starting a trading or manufacturing business in the UK will proceed seamlessly only when you understand hm customs and excise duties and make all your payments in time vatvalidation-com/vat/. Most duties and taxes in Britain are managed by hm revenue and customs or hmrc, which has been established in 2005 after the merger of hm customs department together with the revenue department.
If your business involves importing goods or services from member eu states that have embraced vat then there are certain vat rules that need to be followed not just in the nation of origin but also in Britain . If you want to go in for vat refund for vat already paid within 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 need to pay the appropriate customs duties according to the nature of the goods. If you plan to import alcohol or cigarettes and tobacco products then you’ll need to pay excise duty to the hm customs and excise department. There are 14,000 classifications provided by the hmrc vat department and customs, excise, import vat and sales vat duties would 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. While you can certainly get all the knowledge from the hm customs and excise website you can still use the services of experienced customs duty and vat agent. Such an agent could help pay your customs and excise duties whilst preparing your vat returns within the stipulated time. A broker with offices in other countries will be ideal since you may also go in for vat refunds in countries where you may have already paid vat.
As soon as you pay your duties and manage to reclaim vat successfully, you’ll be able to accomplish ideal costs for your products and services, thus enhancing the efficiency of your business. In times of competition avoiding double taxation will be a huge asset while paying your customs and excise duties dutifully will keep yourself the appropriate side of the law. Anyway, the money which you pay as import duties and vat is utilized by the excise and customs department for public services. With technology at your fingertips, now you can pay much of your taxes including vat online by registering your business at the hmrc website.
Customs and excise duties along with collection of vat forms an essential revenue stream to the government of the UK. In case you have started a business in Britain or have a manufacturing plant that needs to import capital goods or spares from other countries including eu countries then you’ll need to read about hm customs and excise duties in order to quickly give the correct amount of applicable duties on your imports.