Pay import vat when you import goods from eu special territories

If you're importing goods to the UK from specific parts of the world then you'll have 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 hm revenue and customs department at 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 that are subject to customs duties, excise duties and import vat. Most alcohol and tobacco products www.vatcheck.com along with certain activities like 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 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 The Channel Islands in the United Kingdom. This vat may also be levied whenever you import goods from non eu countries.

However, if you are a vat registered trader in the United Kingdom you'll be able to apply 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 if the goods that you have imported are offered in the local UK market. Countries such as the UK and Italy offer special vat deferment schemes where you 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 from your market then you'll also have to charge any 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. If you have problem in understanding various duties and taxes imposed by the hmrc then you should hire the services of an excellent vat and customs agent. This may enable you to focus on expanding your business while all relevant paperwork and payment of taxes and duties is handled in a efficient manner.

The import vat rate is exactly like sales vat rates of similar products sold 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 go up to 20% from January 4, 2011. Second is the lower vat rate of 5% whilst the third is zero vat rate. There's also certain goods and services that 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 employ all legal avenues to lower your costs such as vat refunds, vat deferments, etc so that you can reduce your costs further and enhance the income 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 expertise of a competent vat agent to claim additional vat back.