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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 globe then you will 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 at the port or airport itself and the goods are then governed by local sales vat rules.

The hmrc has provided for 14,000 classifications of products and services that are governed by customs duties, excise duties and import vat. Most alcohol and cigarettes and tobacco products checkvatnumber together with certain activities such as gambling are subject to excise duties while almost all other imports come under customs duties and import vat depending on the goods and also the country from where they arrive.

The hmrc has specified eu special territories where import vat will 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 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 UK then you can apply for a vat refund in case you have already paid vat on any goods in the country of origin itself before being imported to the UK. You can also offset this vat against sales vat when the goods that you’ve imported are offered from our UK market. Countries such as the UK and Italy offer special vat deferment schemes where you can get relief from import vat for up to one 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 protect your cash flow.

Once 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 have to make vat invoices that specifically mention vat rates as well as file regular vat returns. For those who have problem in understanding various duties and taxes imposed by the hmrc then you definately should engage 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 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. 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 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 costs with an accurate basis. You should employ all legal avenues to lower your costs such as vat refunds, vat deferments, etc to enable you to lower your costs further and enhance the income of your respective business. You need to diligently pay import vat whenever you import goods from eu special territories or from non eu countries and use the services of a competent vat agent to claim additional vat back.