Being a vat registered trader in Britain like many 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. In case you have purchased services or goods where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to your business cash-flow.
As being a business you can claim vat back only on goods and services related to your business and not with regards to your 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 reclaim vat charged vatverification regardless of the rates, whether it is the standard, 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 procedure for filing for vat refunds is quite complex and time consuming, particularly for services or goods imported from other eu countries, you should utilize the assistance of a professional vat agent that is totally acquainted with the latest 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 in the event the claim does not materialize. This facility ought to be accepted by you to avoid paying money from your pocket to the agent since vat claims usually take between four to eight months to get to an effective conclusion.
You may first need to register yourself online with the hmrc vat website if you wish to make use of all vat services provided 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 also may additionally need 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 changed into sterling pounds whenever you transfer it to your UK banking 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 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 should opt 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 UK then you should explore all legal means to recover any tax which has already been paid on goods or services used by your organization. You don’t need to invest your personal time or staff while making vat claims since a competent vat agent can do the same on your behalf and only collect fees whenever your refund claim is approved.