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Pay import vat when you import goods from eu special territories


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If you are importing goods to the UK from specific regions of the world then you’ll have to pay import vat when 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 the goods are then subject to local sales vat rules.

The hmrc has provided for 14,000 classifications of goods and services that are governed by customs duties, excise duties and import vat. Most alcohol and tobacco products together with certain activities such as gambling are governed by excise duties while almost every other imports come under customs duties and import vat according to the goods and the country from where 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. 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 UK. This vat will also be levied when you import goods from non eu vat registration number countries.

However, if you are a vat registered trader in the UK 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 if the goods that you have imported are sold from our UK market. Countries like the UK and Italy also offer special vat deferment schemes where you 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 protect your cash flow.

When you start selling your goods or services in the local market then you will also have 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. If you 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 allow 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 rate is exactly like sales vat rates of comparable products sold in the UK. The UK 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 that are totally exempt from the vat.

You should have sufficient knowledge on various duties and taxes applicable on imported goods into the UK so that you can calculate the costs on an accurate basis. You should employ all legal avenues to reduce your costs like vat refunds, vat deferments, etc to enable you to lower your costs further and enhance the income of your respective business. You should diligently pay import vat when 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.