Pay import vat when 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 or even from non eu countries. This tax is collected by the hmrc vat department or 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 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 subject to excise duties while almost every other imports come under customs duties and import vat according to the goods and the country from which they arrive.

The hmrc has specified eu special territories where import vat is going to be levied if services or goods are brought in or sent to such territories. Those are the www.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 The Channel Islands in the United Kingdom. This vat will also be levied whenever you import goods from non eu countries.

However, if you are a vat registered trader in the UK then you can 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 when the goods that you have imported are offered from our UK market. Countries such as the UK and Italy offer special vat deferment schemes where you can get respite from import vat for up to a 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.

When you start selling your goods or services in the local market then you will also need to charge the local sales vat rate to your clients. You will have to make vat invoices that specifically mention vat rates and also 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 will enable you to concentrate on expanding your enterprise while all relevant paperwork and payment of taxes and duties is handled in a efficient manner.

The import vat rates are the same as sales vat rates of comparable products available in the UK. The UK has 3 vat rate slabs. The 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's also certain goods and 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 to enable you to calculate the costs with an accurate basis. You should use all legal avenues to reduce your costs such as vat refunds, vat deferments, etc to enable you to reduce 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 expertise of a competent vat agent to claim additional vat back.