Pay import vat when you import goods from eu special territories

If you’re importing goods to the UK from specific parts of the globe then you’ll need 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 the 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 subject to customs duties, excise duties and import vat. Most alcohol and cigarettes and tobacco products www.vatcheck.com together with certain activities like gambling are subject to 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 goods or services are brought in or sent 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 may also be levied when 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 may also offset this vat against sales vat when the products which you have imported are sold in the local 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 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’ll also need to charge the 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 should engage the services of a proficient vat and customs agent. This will enable 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 the same as sales vat rates of similar products sold in the UK. The United Kingdom 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. The second is the lower vat rate of 5% whilst the third is zero vat rate. There’s also certain products or 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 with an accurate basis. You should use all legal avenues to reduce your costs like vat refunds, vat deferments, etc so that you can 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 services of a competent vat agent to claim additional vat back.