Pay import vat whenever you import goods from eu special territories

If you are importing goods into the UK from specific regions of the globe then you’ll have to pay import vat when you import goods from eu special territories or even 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 goods and services that are governed by customs duties, excise duties and import vat. Most alcohol and cigarettes and tobacco products together with certain activities like gambling are governed by excise duties while www.vatvalidation.com/vat almost every 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 goods or services 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 The Channel Islands in the United Kingdom. This vat will also be levied whenever you import goods from non eu countries.

However, if you are a vat registered trader in the UK you’ll be able to make application for a vat refund in case you have already paid vat on any goods in the country of origin itself before being imported to the UK. You may also offset this vat against sales vat when the products which you’ve imported are sold from our UK market. Countries like the UK and Italy offer special vat deferment schemes where you can get respite from import vat for approximately a 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 safeguard your cash flow.

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

The import vat rates are the same as sales vat rates of comparable products sold in the UK. The UK has 3 vat rate slabs. The first is the standard vat rate of 17.5% which is slated to go up 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 which are totally exempt from the 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 on an accurate basis. You should use all legal avenues to lower your costs like vat refunds, vat deferments, etc so that you can lower your costs further and enhance the income of your 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 a competent vat agent to claim additional vat back.