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 your payments on time Http://www.vatvalidation.com/vat/. Most duties and taxes in Britain 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 goods or services from member eu states that have embraced vat there are certain vat rules that should be followed not just in the nation of origin but also in the UK . 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 offered by vat then you’ll 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.
When you import services or goods in the UK then you’ll also need to pay the appropriate customs duties according to the nature of the goods. If you plan to import alcohol or tobacco products then you will 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 goods or services in another country before importing it to the UK then after paying all your duties, you can still claim the vat paid in the other country by furnishing all the required details. To be able to successfully get a vat reclaim, knowledge of uk vat and eu vat rules is a must. Whilst you can certainly get all the required knowledge from the hm customs and excise website you can still use the services of experienced customs duty and vat agent. Such an agent could help pay your customs and excise duties while also preparing your vat returns in the stipulated time. A broker with offices abroad would be ideal as you may also go for vat refunds in countries where you may have already paid vat.
As soon as you pay all your duties and find a way to reclaim vat successfully, you will be able to achieve ideal costs for the services and products, 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 you on 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 close at hand, you can now 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 important revenue stream to the government of the UK. In case you have started a business in the UK or have got a manufacturing plant that has to import capital goods or spares from other countries including eu countries then you will need to read about hm customs and excise duties in order to quickly give the correct amount of applicable duties on your imports.