Being a vat registered trader in Britain like many other eu countries that have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. If you have purchased goods or services 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 a business you can claim vat back only on services and goods related to your organization 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. You can https://vatvalidation.com/vat reclaim vat charged regardless of the rates, be it the regular, 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 quite complex and time-consuming, especially for services or goods imported from other eu countries, you should utilize the services of a professional vat agent that’s totally acquainted with the latest uk vat and eu vat rules. Several agents will charge a fee based on a amount of the vat reclaim amount once it has been approved and won’t charge any fees if ever the claim doesn’t materialize. This facility should be accepted by you to not pay any money from your pocket to your agent since vat claims usually take between four to 8 months to get to an effective conclusion.
You will first need to register yourself online with the hmrc vat website if you wish to use 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 need 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 your application to the mentioned country and you also may additionally need to send additional documents like 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 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 when you transfer it to the UK banking account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds into your business. If you regularly participate in trade shows 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 price 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 United Kingdom then you should explore all legal ways to recover any tax that has previously 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 is capable of doing precisely the same for you and only collect fees when your refund claim is eligible.