Starting a trading or manufacturing business in the UK will proceed seamlessly only if you understand hm customs and excise duties and work out all of your payments in time https://www.vatvalidation.com/vat/. Most duties and taxes in the UK 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.
If your business involves importing goods or services from member eu states which have embraced vat then there are certain vat rules that should be followed not just in the country 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 provided by vat then you’ll have to turn into a vat registered trader. In the UK this can be achieved when 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 for the appropriate customs duties according to the nature of the goods. If you intend to import alcohol or cigarettes and tobacco products then you will have 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 would depend on this classification.
If you have already paid vat on goods or services in a foreign 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. In order to successfully obtain a vat reclaim, knowledge of uk vat and eu vat rules is essential. While you can easily 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. Such an agent may help pay your customs and excise duties whilst preparing your vat returns in the stipulated time. An agent with offices in other countries would be ideal since you may also go in for vat refunds in countries in which you might 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 achieve ideal costs for the services and products, thus enhancing the efficiency of your respective business. In times of competition avoiding double taxation will 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 that you pay as import duties and vat is utilized by the excise and customs department for public services. With technology close at hand, now you can 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 essential revenue stream to the government of the UK. If you have started a business in the UK or have a manufacturing plant that has to import capital goods or spares from other countries including eu countries then you will need to learn about hm customs and excise duties so as to quickly give the appropriate amount of applicable duties for your imports.