Pay import vat when you import goods from eu special territories

If you are importing goods into the UK from specific parts of the world 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 at the port or airport itself and the goods are then governed by local sales vat rules.

The hmrc has provided for 14,000 classifications of products and services which are subject to customs duties, excise duties and import vat. Most alcohol and tobacco products vatcheck together with certain activities such as gambling are governed by excise duties while almost all other imports fall under customs duties and import vat depending on the goods and also 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 sent to such territories. They 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 United Kingdom then you can make application for a vat refund in case you have already paid vat on any goods in the nation of origin itself before being imported into the UK. You may also offset this vat against sales vat when the goods that you have imported are offered in the local UK market. Countries such as the UK and Italy also offer special vat deferment schemes where you can get respite from import vat for approximately one month by filing out a unique vat form with the hmrc and opening of a special vat deferment account with them. This move would help safeguard your cash flow.

Once you start selling your goods or services in the local market then you’ll also have to charge any local sales vat rate to your clients. You will have to make vat invoices that specifically mention vat rates as well as file regular vat returns. For those who 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 will allow you to concentrate on expanding your enterprise while all relevant paperwork and payment of taxes and duties is handled in a efficient manner.

The import vat rates are exactly like sales vat rates of similar products available in the United Kingdom. The UK has 3 vat rate slabs. The very first is the normal vat rate of 17.5% which is slated to rise 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 that are totally exempt from any vat.

You should have sufficient knowledge on various duties and taxes applicable on imported goods into the UK so that you can calculate the costs with an accurate basis. You should employ all legal avenues to reduce your costs like vat refunds, vat deferments, etc to enable you to reduce your costs further and enhance the cash flow of your business. You need to diligently pay import vat when 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.