Thursday, March 22, 2018

VAT on imports and exports

Export Essentials | Customs, VAT & Licence



There are important VAT rules to consider if your business imports or exports goods or made sales to other countries Understanding the rules will help your business run smoothly and make sure to avoid fines and financial penalties complex rules and regulations governing imports and exports.
In general, VAT is due on all imports at the same rate that would be applicable to the product or service in the UK, you will not have to register for VAT on the importation of goods, but obviously if you do not register you will not be able to claim back the VAT you pay if you buy goods in the EU, you must declare the exit tax on them on your VAT return, however, you are allowed to recover the input tax on goods subject to the normal rules.
If you import from outside the EU of products you have to pay import VAT and duty before the goods are released by HM Revenue Customs Remember that duty is a separate and additional fee-based the value of imported goods the fee varies and depends on the country and type of product.
Unfortunately, the duty can not be recovered by the VAT registered enterprises There is no duty on goods that originate in a country of the EU or that have already been imported with fees already paid once in EU, there is no obligation to pay if the goods are transported from EU countries to the EU countries.
If you import goods from outside the EU, you can store them in warehouses approved HMRC if you want and only pay VAT and import duties when the goods leave the warehouse This facility can be particularly useful if you do not plan to sell assets immediately.
If you plan to re-export products after processing, you can ask the treatment Inward relief VAT and duty becomes due if you sell products in the UK or do not fully comply with the plan if you import regularly consider a deferral account, where you settle VAT and duties on monthly credit account is free and the advantage is that you can put off payment for an average of 30 days and your assets will normally releasable faster, you may -being a bank guarantee, although recently simplified rules known as SIVA simplified import VAT means that it is not always necessary accounting subject to conditions, and all companies are eligible to check to see if you qualify.



To recover the VAT on imports, you must complete your VAT return for the period during which the goods were imported - you will get a C79 certificate to show that the VAT import you paid - and you will have the keep as evidence to support your request for inspection by an officer of the VAT tour.
If you are exporting goods outside the EU, you can zero-rate their sale provided that you retain commercial and official proof of their removal from the UK The same rules will apply to the sale of most products to customers enrolled in VAT in the EU in these circumstances, you will also need to obtain and record the registration number of the VAT on the invoice If you sell products in sufficient quantities to non EU-registered customers you may need to VAT register in other EU states.
If you do a lot of trade with Europe you might have to provide more detailed information that supplementary declarations Intrastat.
The rules on the export of services are exceptionally complex and you should seek professional advice.







VAT on imports and exports, imports, exports.