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Pay import vat when you import goods from eu special territories


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If you’re 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 also the goods are then governed by local sales vat rules.

The hmrc has provided for 14,000 classifications of goods and services which are subject to customs duties, excise duties and import vat. Most alcohol and cigarettes and tobacco products along with certain activities like gambling are governed by excise duties while vatvalidation.com/vat almost every other imports fall 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. 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 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 in case you have already paid vat on any goods in the country of origin itself before being imported into the UK. You can also offset this vat against sales vat when the products which you have imported are offered from our UK market. Countries like the UK and Italy offer special vat deferment schemes where one can get relief from import vat for approximately a month by filing out a special vat form with the hmrc and opening of an 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 need 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. For those who have problem in understanding various duties and taxes imposed by the hmrc then you should hire the services of a proficient vat and customs agent. This will enable you to focus on expanding your enterprise 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 similar products sold in the UK. The UK has 3 vat rate slabs. The very first is the normal vat rate of 17.5% that is slated to go up to 20% from January 4, 2011. Second is the reduced 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 charges with an accurate basis. You should use all legal avenues to reduce 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 whenever you import goods from eu special territories or from non eu countries and use the expertise of an efficient vat agent to claim additional vat back.