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Pay import vat whenever you import goods from eu special territories


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If you’re importing goods to the UK from specific parts of the globe 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 hm revenue and customs department on 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 goods and services which are subject to customs duties, excise duties and import vat. Most alcohol and cigarettes and tobacco products together with certain activities like gambling are governed by excise duties while almost all 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 is going to be levied if goods or services are brought in or sent to such territories. They are The vat check 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 will also be levied when you import goods from non eu countries.

However, if you’re a vat registered trader in the UK you’ll be able to apply for a vat refund when you have already paid vat on any goods in the country of origin itself before being imported into the UK. You may also offset this vat against sales vat if the products which you have imported are sold from our UK market. Countries like the UK and Italy offer special vat deferment schemes where you can get relief from import vat for approximately 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.

When you start selling your goods or services in the local market then you’ll also need to charge any local sales vat rate to your 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 definately should hire the services of a proficient vat and customs agent. This may enable you to focus 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 the same as sales vat rates of similar products available in the UK. The United Kingdom has 3 vat rate slabs. The very first is the standard vat rate of 17.5% which is slated to go up to 20% from January 4, 2011. Second is the lower vat rate of 5% while the third is zero vat rate. There are also certain goods and services that are totally exempt from any vat.

You should have sufficient knowledge on various duties and taxes applicable on imported goods into the UK so that you can calculate the charges on an accurate basis. You should use all legal avenues to reduce your costs like vat refunds, vat deferments, etc so that you can reduce your costs further and enhance the income of your 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.