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 make sure to file for for vat claims to reclaim vat back. In case you have purchased goods or services where vat was already charged, even in another eu country, you can certainly claim that vat amount to give a boost to the business cash-flow.
As being 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 that handles customs, excise and vat departments in Britain. You can reclaim vat charged http://vatverification.com 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, particularly for services or goods imported from other eu countries, you should utilize the services of an expert 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 the percentage of the vat reclaim amount once 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 your 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 at the hmrc vat website if you wish to make use of all vat services offered by the department. Even if you wish 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 have to send additional documents such as your vat certificate together with the original vat invoice, if desired by that country. If all of 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 whenever you transfer it to the UK bank account.
Reclaiming vat provides relief for 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 to the UK where vat was already 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 means to recover any tax which has previously 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 can do the same for you and only collect fees whenever your refund claim is approved.