Starting a trading or manufacturing business in the UK will proceed seamlessly only when you understand hm customs and excise duties and make all your payments on time. 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 with the revenue department.
If your business involves importing services or goods from member eu states that have embraced vat then there are certain vat rules that should be followed vat validation not just in the nation of origin but also in Britain. If you want to go in for vat refund for vat already paid in 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 is 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 will also need to pay the appropriate customs duties according to the nature of your goods. If you plan to import alcohol or cigarettes and tobacco products then you’ll need 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 will depend on this classification.
In case you have already paid vat on goods or services in another country before importing it into the UK then after paying all your duties, you can still claim the vat paid inside the other country by furnishing all the required details. To be able to successfully obtain a vat reclaim, knowledge of uk vat and eu vat rules is essential. While you can certainly get all the knowledge from the hm customs and excise website you possibly can still utilize the services of an experienced customs duty and vat agent. Such an agent could help pay your customs and excise duties while also preparing your vat returns within the stipulated time. An agent with offices in other countries would be ideal as you could also go for vat refunds in countries where you may have already paid vat.
Once you pay your duties and manage to reclaim vat successfully, you’ll be able to achieve ideal costs for your services and products, thus enhancing 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 will 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 at your fingertips, you can now pay much of your taxes including vat online by registering your enterprise at the hmrc website.
Customs and excise duties along with collection of vat forms an important revenue stream to the government of the UK. If 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’ll need to read about hm customs and excise duties so as to quickly give the appropriate amount of applicable duties on your imports.