As a vat registered trader in the UK like a number of other eu countries that 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 services or goods where vat vat check was already charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to the business cash-flow.
As being a business you can claim vat back only on services and goods related to your business but not for your personal use. This vat is known as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in Britain. You can reclaim vat charged irrespective of the rates, whether it is the standard, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods as well as certain exceptions.
Since the procedure for filing for vat refunds is fairly complex and time-consuming, especially for services or goods 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 amount of the vat reclaim amount after it has been approved and won’t charge any fees if the claim doesn’t materialize. This facility should be accepted by you to not pay any money from your pocket to the agent since vat claims usually take between four to eight months to come to a successful conclusion.
You will first have to register yourself online with the hmrc vat website if you want to use all vat services offered by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you will still have to make an application for vat reclaim with hmrc first and in addition provide all necessary vat documents including vat receipts so that your claim can be processed further. Hmrc will forward your application to the mentioned country and you may additionally have to send additional documents like your vat certificate together 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 may be converted into sterling pounds when you transfer it to your UK banking account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds in your business. In the event you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods to 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 enabling 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 definitely should explore all legal ways to recover any tax that has already been paid on goods or services utilized by your organization. You don’t need to invest your personal time or staff while making vat claims since a capable vat agent can do the same for you and only collect fees whenever your refund claim is approved.