Being a vat registered trader in the UK as in a number of 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 has already been 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 are able to claim vat back only on goods and services related to your organization but not for your personal use. This vat is referred to 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, be it the regular, reduced or zero rate. However, you can expect to be unable 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 utilize the services of a professional vat agent that’s totally acquainted with the latest uk vat and eu vat rules. Several agents charge you a fee based on the 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 any money out of your pocket to the agent since vat claims usually take between four to 8 months to get to an effective conclusion.
You will first have to register yourself online at the hmrc vat website if you want to use all vat services provided by the department. Even if you want to file a vat claim for vat paid in a foreign eu country, you will still have to apply for vat reclaim with hmrc first and in addition 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 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 at the first attempt itself, you could receive your vat refund within 4 months, albeit in the currency of the foreign eu country, which may be converted into sterling pounds whenever you transfer it to the 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 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.
When you do turn into a vat registered trader in the UK then you definitely should explore all legal means to recover any tax which has already been paid on services or goods used by your business. You need not invest your own time or staff while making vat claims since a competent vat agent is capable of doing the same on your behalf and just collect fees when your refund claim is eligible.