Pay import vat whenever you import goods from eu special territories

If you’re importing goods into the UK from specific parts of the globe then you will 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 the hm revenue and customs department on 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 which are subject to customs duties, excise duties and import vat. Most alcohol and tobacco products checkvatnumber 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 will 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 may also be levied when you import goods from non eu countries.

However, if you are a vat registered trader in the United Kingdom you’ll be able to 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 to the UK. You may also offset this vat against sales vat when the goods that you’ve imported are offered in the local UK market. Countries such as the UK and Italy offer special vat deferment schemes where you can get relief from import vat for approximately one 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 protect your cash flow.

When you start selling your services or goods from your market then you’ll also have 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 an excellent vat and customs agent. This may enable you to concentrate on expanding your enterprise while all relevant paperwork and payment of taxes and duties is handled in an efficient manner.

The import vat rates are the same as sales vat rates of similar products available in the United Kingdom. The UK has 3 vat rate slabs. The first is the normal vat rate of 17.5% which 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 the vat.

You should have sufficient knowledge on various duties and taxes applicable on imported goods into the UK to enable you to calculate the charges with an accurate basis. You should use all legal avenues to reduce your costs like vat refunds, vat deferments, etc to enable you to lower your costs further and enhance the income of your business. You should diligently pay import vat when you import goods from eu special territories or from non eu countries and use the expertise of an efficient vat agent to claim additional vat back.