Pay import vat when you import goods from eu special territories

If you are importing goods to the UK from specific regions of the globe then you will need to pay import vat whenever 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 also the items are then governed by local sales vat rules.

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

The hmrc has specified eu special territories where import vat is going to 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 also the Channel Islands in the UK. This vat will also be levied when you import goods from non eu countries.

However, if you are a vat registered trader in the UK then you can apply for a vat refund in case you have already paid vat on any goods in the country of origin itself before being imported into the UK. You may also offset this vat against sales vat if the goods that you have imported are sold in the local UK market. Countries like the UK and Italy offer special vat deferment schemes where one can get respite from import vat for up to one month by filing out a special vat form with the hmrc and opening of a special vat deferment account with them. This move would help protect your cash flow.

Once you start selling your goods or services from your market then you will also have to charge any local sales vat rate to your clients. You will have to make vat invoices that specifically mention vat rates and also file regular vat returns. If you have problem in understanding various duties and taxes imposed by the hmrc then you definately should engage the services of an excellent vat and customs agent. This will allow you to concentrate on expanding your business while all relevant paperwork and payment of taxes and duties is handled in an efficient manner.

The import vat rate is the same as sales vat rates of comparable products available in the UK. The UK has 3 vat rate slabs. The first is the normal vat rate of 17.5% that is slated to rise to 20% from January 4, 2011. Second is the reduced vat rate of 5% while the third is zero vat rate. There’s also certain products or services that are totally exempt from any vat.

You ought to have sufficient knowledge on various duties and taxes applicable on imported goods to the UK so that you can calculate the costs with an accurate basis. You should use all legal avenues to lower your costs such as vat refunds, vat deferments, etc so that you can reduce your costs further and enhance the income of your business. You should diligently pay import vat whenever you import goods from eu special territories or from non eu countries and use the services of a competent vat agent to claim additional vat back.