Starting a trading or manufacturing business in Britain will proceed seamlessly only if you learn about 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 has been established in 2005 following the merger of hm customs department together with the revenue department.
If your business involves importing services or goods from member eu states which have embraced vat there are certain vat rules that should be followed http://vatvalidation.com not just in the country of origin but also in Britain. If you wish to go for vat refund for vat already paid in the original country or if you want to enjoy all other advantages provided by vat then you will need to turn into a vat registered trader. In Britain this can be achieved when you touch the vat threshold figure of £70,000 in taxable sales.
Once you import goods or services in the UK then you’ll also have to pay the appropriate customs duties depending on the nature of your goods. If you intend 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.
If you have already paid vat on services or goods in a foreign country before importing it to 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 required details. To be able to successfully obtain a vat reclaim, knowledge of uk vat and eu vat rules is essential. While you can easily 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 may help pay your customs and excise duties whilst preparing your vat returns within the stipulated time. A broker with offices in other countries would be ideal since you could 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’ll be able to achieve ideal costs for your services and products, thus increasing the efficiency of your respective business. During times of competition avoiding double taxation will be a huge asset while paying your customs and excise duties dutifully could keep yourself the right side of the law. Anyway, the money which you pay as import duties and vat is used by the excise and customs department for public services. With technology close at hand, now you can pay most of your taxes including vat online by registering your business at the hmrc website.
Customs and excise duties along with collection 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 so as to quickly pay the correct amount of applicable duties on your imports.