Being a vat registered trader in Britain like many other eu countries which have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. In case you have purchased goods or services where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount to give a boost to the business cash-flow.
As being a business you can claim vat back only on goods and services related to your business but not for your personal use vatvalidation.com/vat. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. It is possible to reclaim vat charged irrespective of the rates, be it the regular, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods apart from certain exceptions.
Since the procedure for filing for vat refunds is fairly complex and time consuming, particularly for goods or services imported from other eu countries, you should use the services of an expert vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules website. Several agents charge you a fee based on the amount of the vat reclaim amount after it has been approved and will not charge any fees if ever the claim does not materialize. This facility ought to be accepted by you to not pay money from your pocket to your agent since vat claims usually take between four to 8 months to come to an effective conclusion.
You may first have to register yourself online at the hmrc vat website if you wish to make use of all vat services offered by the department. Even though you wish to file a vat claim for vat paid in a foreign eu country, you will still have to apply for vat reclaim with hmrc first and also provide all necessary vat documents including vat receipts so that your claim may be processed further. Hmrc will forward the application to the mentioned country and you also might also have to send additional documents like your vat certificate along with the original vat invoice, if desired by that country. If all your documents are found to be in order at the first attempt itself, you could receive your vat refund within 4 months, albeit in the currency of the foreign eu country, which may be converted into sterling pounds whenever you transfer it to your UK bank account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. In the event you regularly participate in trade shows in member eu countries and pay vat in those countries, or import goods to the UK where vat was already paid then you certainly should go for vat refunds as this move will lower the cost of your goods while enabling you to legally claim doubly paid tax back from the government.
Once you do turn into a vat registered trader in the United Kingdom then you should explore all legal ways to recover any tax which has previously been paid on goods or services utilized by your business. You don’t need to invest your own time or staff while making vat claims since a competent vat agent is capable of doing precisely the same on your behalf and only collect fees when your refund claim is approved.