As a vat registered trader in the UK as in a number of other eu countries which have adopted VAT or value added tax, you should ensure to file 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 are able to 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 goods and services linked to your business but not with regards to your use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department vatnumbers that handles customs, excise and vat departments in the UK. You can reclaim vat charged irrespective of the rates, whether it is the standard, reduced or zero rate. However, you can expect to be unable 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, particularly for goods or services imported from other eu countries, you should utilize the assistance of an expert vat agent that’s 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 should be accepted by you to not pay money from 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 if you wish 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 also provide all necessary vat documents including vat receipts so that your claim can be processed further. Hmrc will forward the application to the mentioned country and you may additionally need to send additional documents such as 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 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 converted into sterling pounds whenever you transfer it to your UK banking account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds in your business. In the event you regularly participate in trade shows 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 since 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 definitely should explore all legal ways to recover any tax which has already been paid on services or goods used by your business. You need not invest your personal time or staff while making vat claims since a competent vat agent can do the same on your behalf and just collect fees whenever your refund claim is eligible.