Starting a trading or manufacturing business in the UK will proceed seamlessly only when you learn about hm customs and excise duties and work out all your payments in time www.vatvalidation.com/vat/. Most duties and taxes in Britain 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 which have embraced vat 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 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 need to turn into a vat registered trader. In Britain this can be achieved once you touch the vat threshold figure of £70,000 in taxable sales.
When you import goods or services in the UK then you’ll also have to pay for the appropriate customs duties according to the nature of your goods. If you intend to import alcohol or tobacco products then you will need 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 into the UK then after paying all your duties, you are able to still claim the vat paid in 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. Whilst you can certainly get all the required knowledge from your hm customs and excise website you can still use the services of experienced customs duty and vat agent. This type of agent could help pay your customs and excise duties whilst preparing your vat returns within the stipulated time. An agent with offices in other countries will be ideal as 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 find a way to reclaim vat successfully, you’ll be able to accomplish 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 you on 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 close at hand, you can now pay most 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 essential source of income to the government of the UK. If you have started an organization in the UK or have got a manufacturing facility 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 correct amount of applicable duties for your imports.