If you’re importing goods to the UK from specific parts of the world then you’ll have 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 subject to local sales vat rules.

The hmrc has provided for 14,000 classifications of products and services which are governed by customs duties, excise duties and import vat. Most alcohol and tobacco products together with certain activities like gambling are subject to excise duties while almost all other imports come under customs duties and import vat according to 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 sent to such territories. Those are the http://vatcheck.com/vat 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 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 then you can make application for a vat refund when you have already paid vat on any goods in the nation of origin itself before being imported into the UK. You can also offset this vat against sales vat if the goods that you have imported are offered from our UK market. Countries like the UK and Italy also offer special vat deferment schemes where one can get respite from import vat for up to a month by filing out a unique 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 goods or services in the local market then you’ll also need to charge any local sales vat rate to the clients. You will need 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 hire the services of an excellent vat and customs agent. This will allow you to focus 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 exactly like sales vat rates of similar products available in the United Kingdom. The United Kingdom has 3 vat rate slabs. The very first is the normal vat rate of 17.5% that is slated to go up to 20% from January 4, 2011. The second is the reduced vat rate of 5% whilst the third is zero vat rate. There are also certain products or services that are totally exempt from any vat.

You should have sufficient knowledge on various duties and taxes applicable on imported goods to the UK so that you can calculate the costs on an accurate basis. You should employ all legal avenues to lower your costs like vat refunds, vat deferments, etc to enable you to reduce your costs further and improve the cash flow 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.