Learn about hm customs and excise duties
Starting a trading or manufacturing business in the UK will proceed seamlessly only when you understand hm customs and excise duties and work out all your payments in time 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 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 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 want to enjoy all other advantages offered by vat then you’ll need to turn into a vat registered trader. In the UK 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 cigarettes and tobacco products then you’ll 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 will depend on this classification.
In case you have already paid vat on services or goods in another country before importing it into the UK then after paying all of your duties, you can still claim the vat paid in the other country by furnishing all the required details. In order to successfully get a vat reclaim, knowledge of uk vat and eu vat rules is a must. Whilst you can certainly get all the knowledge from your hm customs and excise website you possibly can still utilize the services of an experienced customs duty and vat agent. This type of agent may help pay your customs and excise duties whilst preparing your vat returns in the stipulated time. An agent with offices abroad would be ideal since you may also go for vat refunds in countries in which you may have already paid vat.
As soon as you pay your duties and manage to reclaim vat successfully, you will be able to achieve ideal costs for the products and services, thus enhancing the efficiency of your respective business. During times of competition avoiding double taxation would be a huge asset while paying your customs and excise duties dutifully will keep yourself the right side of the law. Anyway, the amount of money that you pay as import duties and vat is used 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 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. If you have started a business 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 give the correct amount of applicable duties for your imports.