Starting a trading or manufacturing business in Britain will proceed seamlessly only if you understand hm customs and excise duties and make all your payments in time Vatvalidation.com/vat/. Most duties and taxes in the UK are managed by hm revenue and customs or hmrc, which was 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 there are certain vat rules that should be followed not only in the country of origin but also in Britain . If you wish to go in for vat refund for vat already paid in the original country or if you want to enjoy all other advantages provided by vat then you will have to turn into a vat registered trader. In the UK this can be achieved when 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 for the appropriate customs duties depending on the nature of the goods. If you plan to import alcohol or cigarettes and tobacco products then you’ll have 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.
If you have already paid vat on goods or services in another country before importing it to the UK then after paying all 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, knowledge of uk vat and eu vat rules is a must. Whilst you can certainly get all the required knowledge from your hm customs and excise website you possibly can still use the services of experienced customs duty and vat agent. Such an agent may help pay your customs and excise duties while also preparing your vat returns in the stipulated time. An agent with offices abroad would be ideal since you may also go for vat refunds in countries in which you may have already paid vat.
As soon as you pay all your duties and manage to reclaim vat successfully, you’ll be able to accomplish ideal costs for your services and products, thus enhancing the efficiency of your business. During times of competition avoiding double taxation would be a huge asset while paying your customs and excise duties dutifully could keep you on the appropriate side of the law. Anyway, the amount of money that you pay as import duties and vat is used by the excise and customs department for public services. With technology at your fingertips, now you can pay most of your taxes including vat online by registering your business 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 a business in the UK or have got 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 so as to quickly give the appropriate amount of applicable duties for your imports.