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 will need to pay import vat whenever 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 subject to local sales vat rules.

The hmrc has provided for 14,000 classifications of goods and services that are subject to 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 almost all other imports come 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 will be levied if services or goods are brought in or delivered 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 United Kingdom. This vat may also be levied whenever you import goods from non eu vatregistrationnumber 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 can also offset this vat against sales vat if the goods that you’ve imported are offered from our UK market. Countries like the UK and Italy also offer special vat deferment schemes where you can get relief 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 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. 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 enterprise 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 comparable products available in the UK. The United Kingdom has 3 vat rate slabs. The very first is the normal vat rate of 17.5% that 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 are also certain goods and services that are totally exempt from the vat.

You should have sufficient knowledge on various duties and taxes applicable on imported goods to the UK to enable you to calculate the costs on 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 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 employ the services of an efficient vat agent to claim additional vat back.