As a vat registered trader in Britain as in many 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 was already charged, even in another eu country, you can certainly claim that vat amount back to provide a boost to the business cash-flow.
As being a business you are able to claim vat back only on services and goods linked to your business but not for your personal use. 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 vatvalidation.com/vat reclaim vat charged regardless of the rates, be it the standard, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods apart from certain exceptions.
Considering that the process of filing for vat refunds is fairly complex and time-consuming, particularly for services or goods imported from other eu countries, you should use the services of an expert vat agent that is totally acquainted with the latest 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 won’t charge any fees in the event the claim doesn’t materialize. This facility should be accepted by you to avoid paying money out of your pocket to your agent since vat claims usually take between four to 8 months to come to a successful conclusion.
You will first need to register yourself online with the hmrc vat website if you wish to make use of 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 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 your application to the mentioned country and you might also have to send additional documents such as 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 whenever you transfer it to your UK bank account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds into your business. If you regularly take part in industry events in member eu countries and pay vat in those countries, or import goods into the UK where vat has already been paid then you should opt for vat refunds as 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 UK then you should explore all legal ways to recover any tax which has already been paid on services or goods utilized by your organization. You need not invest your own time or staff while making vat claims since a competent vat agent is capable of doing the same for you and just collect fees when your refund claim is approved.