Being 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. If you have purchased services or goods where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to your business cash-flow.
As 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 https://vatnumbers.com that handles customs, excise and vat departments in Britain. You can reclaim vat charged irrespective of the rates, whether it is the regular, 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 procedure for filing for vat refunds is quite complex and time consuming, especially for goods or services imported from other eu countries, you should utilize the assistance of a professional vat agent that is totally familiar 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 ever the claim does not materialize. This facility ought to be accepted by you to avoid paying any money from your pocket to the agent since vat claims usually take between four to 8 months to come to a successful conclusion.
You may first have to register yourself online with the hmrc vat website if you want to make use of all vat services provided by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you will still need to apply 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 the application to the mentioned country and you might also have to send additional documents such as 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 may 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 in your business. In the event 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 go for vat refunds as this move will lower the cost 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 United Kingdom then you definitely should explore all legal means to recover any tax that has previously been paid on services or goods utilized by your organization. You need not invest your own time or staff while making vat claims since a competent vat agent can do the same on your behalf and only collect fees whenever your refund claim is eligible.