Starting a trading or manufacturing business in Britain will proceed seamlessly only if you understand hm customs and excise duties and make all your payments in 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 together with the revenue department.
In case your business involves importing goods or services from member eu states which have embraced vat there are certain vat rules that should be followed not just in the country of origin but also in Britain . If you wish to go in for vat refund for vat already paid within the original country or if you wish to enjoy all other advantages provided by vat then you will need 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 goods or services into the UK then you will 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 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 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 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, understanding of uk vat and eu vat rules is essential. While you can easily get all the knowledge from your hm customs and excise website you possibly can still use the services of experienced customs duty and vat agent. This type of agent could help pay your customs and excise duties while also preparing your vat returns within the stipulated time. A broker with offices in other countries would be ideal as you could also go in for vat refunds in countries where you may have already paid vat.
As soon as you pay your duties and manage to reclaim vat successfully, you'll be able to accomplish ideal costs for your products and services, 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 right side of the law. Anyway, the amount of 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, you can now pay much of your taxes including vat online by registering your enterprise at the hmrc website.
Customs and excise duties together with collection of vat forms an essential revenue stream to the government of the UK. If you have started a business in Britain or have got a manufacturing facility 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.