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 make sure to file for for vat claims to reclaim vat back. If you have purchased services or goods where vat was already charged, even in another eu country, you can certainly claim that vat amount back to provide a boost to your business cash-flow.
As a business you can claim vat back only on services and goods linked to your organization and not for your personal use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department www.vatnumbers.com that handles customs, excise and vat departments in Britain. You can reclaim vat charged regardless of the rates, whether it is the regular, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods as well as certain exceptions.
Considering that the process of filing for vat refunds is fairly complex and time-consuming, especially for goods or services imported from other eu countries, you should utilize the services of a professional vat agent that is totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on a percentage 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 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 have to register yourself online at the hmrc vat website if you want 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 in addition 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 may additionally 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 in 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 changed into sterling pounds when you transfer it to the UK banking account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds in your business. In the event you regularly take part in trade shows in member eu countries and pay vat in those countries, or import goods into the UK where vat has already been paid then you certainly should opt for vat refunds as this move will lower the price of your goods while allowing 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 means to recover any tax which has already been paid on services or goods utilized by your business. You don’t need to invest your own time or staff while making vat claims since a capable vat agent is capable of doing the same on your behalf and just collect fees whenever your refund claim is eligible.