Should you be importing goods into the UK from certain aspects of the globe you will need to pay import vat whenever you import goods from eu special areas or perhaps from non eu areas. This tax is accumulated through the hmrc vat office or hm revenue and customs office in the port or airport itself and also the items are then susceptible to local sales vat rules.
The hmrc has provided for 14,000 types of products and services which can be subject to customs duties, excise duties and import vat. Nearly all alcohol and cigarettes and tobacco products along with certain actions including gambling are controlled by excise duties while almost all other imports fit into customs duties and import vat with regards to the goods and also the country from which 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 shipped to such areas. These are the French Overseas Departments of Guadeloupe, The Canary Islands in Spain, The Aland Islands in Finland, French Guiana, Mount Athos and Reunion along with Martinique in Greece, and also The Channel Islands in england. This vat may also be levied when you import goods via non eu nations.
On the other hand, if you are a vat registered trader in the UK then you could get a vat refund when you have already paid vat on any goods in in the nation of origin itself before being imported in to the UK. You can also balance out this vat against sales vat in the event the items that you have imported are offered in the local UK market. Places for example the UK and Italy also offer exclusive vat deferment techniques where you can get respite from import vat for up to a month by filing out a special vat form with the hmrc and opening of a special vat deferment account together with them. This step is needed to guard your dollars flow.
Once you set about promoting your services or goods within the local market you’ll also have to charge the neighborhood sales vat rate to your clients. You will have to make vat invoices that specifically mention vat rates and in addition file regular vat returns. In case you have difficulty in knowing a variety of duties and taxes enforced by the hmrc then you must engage the services of an experienced vat and customs agent. This may allow you to concentrate on increasing your company while all pertinent paperwork and payment of taxes and duties is handled within an economical manner.
The import vat rate is just like sales vat rates of similar goods purchased in the UK. The UK has 3 vat rate slabs. The first is the standard vat rate of 17.5% that is slated to go up to 20% from January 4, 2011. The second thing is the reduced vat rate of 5% as the third is zero vat rate. There’s also certain products that are totally exempt from any kind of vat.
You ought to have ample knowledge on several duties and taxes appropriate on imported goods in the UK to enable you to calculate the expenses on an exact basis. You need to use all legal paths to lessen your costs including vat refunds, vat deferments, and so on to be able to reduce your charges further and enhance the income of your company. You need to diligently pay import vat whenever you import goods from eu special territories or from non eu countries and use the expertise of an efficient vat agent to assert additional vat back.