As a vat registered trader in the UK like a number of other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. If 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 back to give a boost to the business cash-flow.
As being a business you are able to claim vat back only on services and goods related to your organization but not with regards to your use. This vat is known as https://vatcontrol.com/vat input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. You can reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you can expect to not be able to claim vat on vat exempt goods apart from certain exceptions.
Since the procedure for filing for vat refunds is quite complex and time consuming, especially for goods or services imported from other eu countries, you should use the assistance of an expert vat agent that is totally familiar with the most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on the amount of the vat reclaim amount after it has been approved and won’t charge any fees if ever the claim does not materialize. This facility should be accepted by you to not pay any money out of your pocket to your agent since vat claims usually take between four to 8 months to get to a successful conclusion.
You will first need to register yourself online at the hmrc vat website if you wish to make use of all vat services offered by the department. Even if you want to file a vat claim for vat paid in a foreign eu country, you will still need 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 of 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 can be converted into sterling pounds whenever you transfer it to the UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. If you regularly take part in trade shows in member eu countries and pay vat in those countries, or import goods to the UK where vat has already been paid then you should go for vat refunds since this move will lower the cost of your goods while allowing you to legally claim doubly paid tax back from the government.
When 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 services or goods used by your organization. You don’t need to invest your own time or staff while making vat claims since a competent vat agent can do precisely the same for you and just collect fees when your refund claim is approved.