Starting a trading or manufacturing business in Britain will proceed seamlessly only when you learn about hm customs and excise duties and make all of your payments on time 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 goods or services from member eu states that have embraced vat there are certain vat rules that need to be followed not just in the country of origin but also in the UK . If you wish to go in for vat refund for vat already paid in the original country or if you want to enjoy other advantages offered by vat then you will have to turn into a vat registered trader. In Britain this is achieved when you touch the vat threshold figure of £70,000 in taxable sales.
Once you import goods or services into the UK then you will also need to pay the appropriate customs duties depending on the nature of the goods. If you intend to import alcohol or tobacco products then you’ll have to pay excise duty to the hm customs and excise department. You’ll find 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 services or goods in another country before importing it to the UK then after paying all of your duties, you can still claim the vat paid inside the other country by furnishing all the required details. In order to successfully obtain a vat reclaim, knowledge of uk vat and eu vat rules is essential. While you can certainly get all the required knowledge from your hm customs and excise website you can still use the services of an experienced customs duty and vat agent. This type of agent could help pay your customs and excise duties whilst preparing your vat returns in the stipulated time. A broker with offices abroad would be ideal since you could also go for vat refunds in countries in which you might 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 increasing the efficiency of your business. In times of competition avoiding double taxation would be a huge asset while paying your customs and excise duties dutifully will keep yourself 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 much 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 source of income to the government of the UK. If you have started an organization in the UK or have a manufacturing plant that needs 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 pay the appropriate amount of applicable duties on your imports.