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Pay import vat whenever you import goods from eu special territories


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If you are importing goods to the UK from specific parts of the globe then you’ll have to pay import vat whenever 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 also the goods 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 checkvatnumber.com together 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 is going to 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 The Channel Islands in the United Kingdom. This vat will also be levied whenever you import goods from non eu countries.

However, if you’re a vat registered trader in the United Kingdom then you can apply for a vat refund in case you have already paid vat on any goods in the nation of origin itself before being imported into 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 such as the UK and Italy offer special vat deferment schemes where you can get respite from import vat for up to 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 safeguard your cash flow.

Once you start selling your services or goods in the local market then you will also have to charge the 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 engage the services of a proficient vat and customs agent. This will enable you to concentrate on expanding your business while all relevant paperwork and payment of taxes and duties is handled in a efficient manner.

The import vat rates are exactly like sales vat rates of comparable products sold in the United Kingdom. The UK has 3 vat rate slabs. The very first is the standard vat rate of 17.5% which is slated to rise to 20% from January 4, 2011. Second is the reduced vat rate of 5% while the third is zero vat rate. There’s also certain products or services which are totally exempt from any vat.

You ought to have sufficient knowledge on various duties and taxes applicable on imported goods to the UK to enable you to calculate the costs on an accurate basis. You should use all legal avenues to lower your costs like vat refunds, vat deferments, etc to enable you to reduce your costs further and improve 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 employ the expertise of a competent vat agent to claim additional vat back.