Pay import vat when you import goods from eu special territories

If you are importing goods into the UK from specific regions of the world then you will need to pay import vat when you import goods from eu special territories as well as from non eu countries. This tax is collected by the hmrc vat department or hm revenue and customs department on the port or airport itself and the items are then governed by local sales vat rules.

The hmrc has provided for 14,000 classifications of products and services that are subject to customs duties, excise duties and import vat. Most alcohol and cigarettes and tobacco products vat check along with certain activities such as gambling are governed by excise duties while almost every other imports come under customs duties and import vat depending on the goods and the country from where they arrive.

The hmrc has specified eu special territories where import vat will be levied if services or goods are brought in or delivered to such territories. Those are the French Overseas Departments of Guadeloupe, The Canary Islands in Spain, The Aland Islands in Finland, French Guiana, Mount Athos and Reunion and Martinique in Greece, and The Channel Islands in the United Kingdom. This vat may also be levied whenever you import goods from non eu countries.

However, if you’re a vat registered trader in the UK you’ll be able to make application for a vat refund when you have already paid vat on any goods in the country of origin itself before being imported into the UK. You can also offset this vat against sales vat if the products which you’ve imported are sold from our UK market. Countries such as the UK and Italy also offer special vat deferment schemes where one can get relief from import vat for approximately one month by filing out a special vat form with the hmrc and opening of an special vat deferment account with them. This move would help protect your cash flow.

When you start selling your services or goods in the local market then you’ll also have to charge the local sales vat rate to the clients. You will need to make vat invoices that specifically mention vat rates as well as file regular vat returns. If you have problem in understanding various duties and taxes imposed by the hmrc then you definately should hire the services of an excellent vat and customs agent. This may allow you to focus on expanding your enterprise while all relevant paperwork and payment of taxes and duties is handled in a efficient manner.

The import vat rate is exactly like sales vat rates of comparable products available in the UK. The United Kingdom has 3 vat rate slabs. The first is the standard vat rate of 17.5% that is slated to go up to 20% from January 4, 2011. The second is the lower vat rate of 5% whilst the third is zero vat rate. There’s also certain goods and services which are totally exempt from any vat.

You ought to have sufficient knowledge on various duties and taxes applicable on imported goods into the UK so that you can calculate the costs on an accurate basis. You should employ all legal avenues to reduce your costs such as vat refunds, vat deferments, etc to enable you to lower your costs further and improve the cash flow of your respective business. You need to diligently pay import vat whenever you import goods from eu special territories or from non eu countries and employ the expertise of an efficient vat agent to claim additional vat back.