Pay import vat whenever you import goods from eu special territories

If you are importing goods into the UK from specific parts of the world then you will need 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 also the items are then subject to local sales vat rules.

The hmrc has provided for 14,000 classifications of products and services which are subject to customs duties, excise duties and import vat. Most alcohol and cigarettes and tobacco products along with certain activities such as gambling are governed by excise duties while https://vatvalidation.com/vat almost all other imports fall under customs duties and import vat according to the goods and also 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 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 The Channel Islands in the United Kingdom. This vat will also be levied when you import goods from non eu countries.

However, if you’re a vat registered trader in the United Kingdom then you can make application for a vat refund when 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 such as the UK and Italy also offer special vat deferment schemes where one can get respite from import vat for approximately 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 services or goods in the local market then you’ll also have to charge the local sales vat rate to the 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 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 rates are the same as sales vat rates of comparable products available in the United Kingdom. The UK has 3 vat rate slabs. The very first is the normal vat rate of 17.5% which is slated to rise 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 the vat.

You ought to have sufficient knowledge on various duties and taxes applicable on imported goods into the UK to enable you to calculate the costs on an accurate basis. You should employ all legal avenues to reduce your costs such as vat refunds, vat deferments, etc so that you can reduce your costs further and enhance 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.