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Pay import vat whenever you import goods from eu special territories


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If you are importing goods into the UK from specific parts of the world then you will 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 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 goods and services which are subject to customs duties, excise duties and import vat. Most alcohol and tobacco products together with certain activities like gambling are vat check subject to excise duties while almost all other imports fall under customs duties and import vat according to the goods and also 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 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 UK then you can make application for a vat refund in case you have already paid vat on any goods in the nation of origin itself before being imported to the UK. You can also offset this vat against sales vat if the products which you have imported are offered in the local UK market. Countries like the UK and Italy offer special vat deferment schemes where one can get respite from import vat for approximately a month by filing out a unique 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 goods or services from your market then you will also have to charge the local sales vat rate to your clients. You will need 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 hire the services of a proficient vat and customs agent. This may 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 UK. The United Kingdom has 3 vat rate slabs. The first is the normal 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% while the third is zero vat rate. There’s also certain products or 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 to enable you to calculate the costs with 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 enhance the income of your respective business. You should diligently pay import vat whenever you import goods from eu special territories or from non eu countries and use the expertise of a competent vat agent to claim additional vat back.