Starting a trading or manufacturing business in the UK will proceed seamlessly only when you learn about hm customs and excise duties and make all of 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.
In case 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 just in the nation of origin but also in the UK . If you wish to go 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’ll 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 your goods. If you intend to import alcohol or tobacco products then you’ll need to pay excise duty to the hm customs and excise department. You’ll find 14,000 classifications furnished by the hmrc vat department and customs, excise, import vat and sales vat duties will depend on this classification.
If you have already paid vat on goods or services in a foreign country before importing it to the UK then after paying all your duties, you are able to still claim the vat paid inside the other country by furnishing all the details. In order to successfully get a vat reclaim, understanding of uk vat and eu vat rules is a must. While you can easily get all the knowledge from the hm customs and excise website you possibly can still use the services of an 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 in other countries would be ideal since you could also go in for vat refunds in countries where you may have already paid vat.
As soon as you pay your duties and find a way to reclaim vat successfully, you’ll be able to achieve ideal costs for your products and services, thus enhancing the efficiency of your respective business. During times of competition avoiding double taxation will be a huge asset while paying your customs and excise duties dutifully could keep you on the right side of the law. Anyway, the amount of money which 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 together with variety of vat forms an essential source of income to the government of the UK. In case you have started an organization in Britain or have a manufacturing facility that needs to import capital goods or spares from other countries including eu countries then you will need to read about hm customs and excise duties so as to quickly give the appropriate amount of applicable duties on your imports.