Starting a trading or manufacturing business in Britain will proceed seamlessly only when you understand hm customs and excise duties and make all of your payments on time vatvalidation-com/vat/. Most duties and taxes in the UK are managed by hm revenue and customs or hmrc, which has been established in 2005 following the merger of hm customs department with the revenue department.
In case your business involves importing services or goods from member eu states that have embraced vat there are certain vat rules that need to be followed not only in the nation of origin but also in the UK . 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 provided by vat then you’ll have to turn into a vat registered trader. In Britain this is achieved once you touch the vat threshold figure of £70,000 in taxable sales.
Once you import goods or services in the UK then you will also have to pay for 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 have 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 would depend on this classification.
If you have already paid vat on services or goods in another country before importing it into the UK then after paying all of your duties, you are able to still claim the vat paid in the other country by furnishing all the details. To be able to successfully get a vat reclaim, understanding of uk vat and eu vat rules is essential. Whilst you can certainly get all the knowledge from the hm customs and excise website you can still utilize the services of an experienced customs duty and vat agent. Such an agent could help pay your customs and excise duties whilst 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 might have already paid vat.
As soon as you pay your duties and find a way to reclaim vat successfully, you will be able to achieve ideal costs for the products and services, thus increasing the efficiency of your respective business. In times of competition avoiding double taxation would be a huge asset while paying your customs and excise duties dutifully could keep yourself the right side of the law. Anyway, the 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 much of your taxes including vat online by registering your business at the hmrc website.
Customs and excise duties along with variety of vat forms an important source of income to the government of the UK. In case you have started a business in Britain or have a manufacturing facility 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 pay the correct amount of applicable duties for your imports.