Being a vat registered trader in Britain as in many other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. If you have purchased services or goods where vat has already been charged, even in another eu country, you can certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you are able to claim vat back only on goods and services related to your organization but not for your personal use. This vat is known as https://vatcontrol.com/vat input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. You can reclaim vat charged regardless of the rates, whether it is the standard, reduced or zero rate. However, you can expect to not be able to claim vat on vat exempt goods apart from certain exceptions.
Since the process of filing for vat refunds is quite complex and time consuming, especially for goods or services imported from other eu countries, you should use the services of an expert vat agent that is totally familiar 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 once it has been approved and won’t charge any fees if the claim does not 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 eight months to come to an effective conclusion.
You may first have to register yourself online with the hmrc vat website if you wish to make use of all vat services provided by the department. Even if you wish to file a vat claim for vat paid in a foreign eu country, you will still need 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 also 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 can be converted 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. In the event you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods into the UK where vat was already paid then you certainly should go 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 UK then you should explore all legal ways to recover any tax which has already been paid on services or goods used by your organization. You don’t need to invest your own time or staff while making vat claims since a competent vat agent can do precisely the same for you and just collect fees when your refund claim is approved.