Pay import vat whenever you import goods from eu special territories

If you are importing goods to the UK from specific regions of the world then you'll need 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 the hm revenue and customs department on the port or airport itself and the goods are then subject to 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 http://vatcheck.com 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 also the country from where they arrive.

The hmrc has specified eu special territories where import vat is going to be levied if services or goods 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 UK. This vat may also be levied when you import goods from non eu countries.

However, if you're 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 to the UK. You may also offset this vat against sales vat if the goods that you've imported are offered from our UK market. Countries like the UK and Italy offer special vat deferment schemes where you can get relief from import vat for up to 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 safeguard your cash flow.

Once you start selling your goods or services from your market then you'll also have to charge any local sales vat rate to your 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 hire the services of an excellent 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 rate is exactly like sales vat rates of similar products sold in the UK. The UK has 3 vat rate slabs. The first is the normal vat rate of 17.5% that is slated to rise to 20% from January 4, 2011. Second is the lower vat rate of 5% whilst the third is zero vat rate. There are also certain products or services that are totally exempt from the 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 employ all legal avenues to lower your costs such as vat refunds, vat deferments, etc to enable you to reduce your costs further and enhance the cash flow 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.