Hi all, I'll be opening a store in the UK in a couple of months. I need to understand a bit more about VAT and what is exactly happening when we purchase items from EU countries and import them to the UK.

So basically, if I understand well, VAT registration is required. I will give my VAT number to the suppliers outside the UK and I will not pay VAT at the time of the purchase.

When the items enter the UK, what happens exactly? When will I pay VAT and duty and on which amount? I mean who fixes the exchange rate?

I will then charge the VAT to my end customers, and complete VAT returns quarterly?

I also can't really understand how the threshold of £81K works?

Thank you in advance for your help