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'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 at the port or airport itself and also the items 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 tobacco products together with certain activities such as gambling are subject to excise duties while http://vatvalidation.com/vat 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 goods or services 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 UK. 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 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 into the UK. You may also offset this vat against sales vat when the products which you've imported are offered from our UK market. Countries such as the UK and Italy also offer special vat deferment schemes where you can get relief 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.

When you start selling your services or goods from your 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 allow 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 the same as sales vat rates of comparable products available in the United Kingdom. The United Kingdom has 3 vat rate slabs. The 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's also certain goods and services which are totally exempt from any vat.

You should have sufficient knowledge on various duties and taxes applicable on imported goods to the UK so that you can calculate the costs with an accurate basis. You should use all legal avenues to lower your costs like vat refunds, vat deferments, etc so that you can lower your costs further and improve the cash flow of your business. You should diligently pay import vat whenever you import goods from eu special territories or from non eu countries and employ the expertise of an efficient vat agent to claim additional vat back.