Pay import vat when you import goods from eu special territories

If you're importing goods to the UK from specific regions of the world then you'll have 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 items are then subject to local sales vat rules.

The hmrc has provided for 14,000 classifications of goods and services which are governed by customs duties, excise duties and import vat. Most alcohol and cigarettes and tobacco products along with certain activities such as gambling are vat check subject to excise duties while almost all 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 is going to be levied if goods or services are brought in or sent to such territories. Those 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 will also be levied when you import goods from non eu countries.

However, if you are a vat registered trader in the UK then you can apply for a vat refund when you have already paid vat on any goods in the country of origin itself before being imported into the UK. You may also offset this vat against sales vat if the products which you have imported are sold in the local UK market. Countries like the UK and Italy also offer special vat deferment schemes where one can get respite from import vat for up to a month by filing out a unique vat form with the hmrc and opening of an special vat deferment account with them. This move would help safeguard your cash flow.

Once you start selling your goods or services from your market then you will also need to charge the local sales vat rate to the clients. You will need 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 definately should engage the services of a proficient vat and customs agent. This will allow you to concentrate on expanding your business while all relevant paperwork and payment of taxes and duties is handled in an efficient manner.

The import vat rate is the same as sales vat rates of comparable products available in the United Kingdom. The United Kingdom has 3 vat rate slabs. The very first is the standard vat rate of 17.5% that is slated to go up to 20% from January 4, 2011. The second is the reduced vat rate of 5% whilst the third is zero vat rate. There's also certain products or services which 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 lower 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 a competent vat agent to claim additional vat back.