As a vat registered trader in the UK as in many 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. In case 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 goods and services related to your business but not with regards to your use. This vat is known as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. It is possible to www.vatvalidation.com/vat reclaim vat charged regardless of the rates, be it the regular, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods as well as certain exceptions.
Since the process of filing for vat refunds is fairly complex and time consuming, especially for services or goods imported from other eu countries, you should utilize the assistance of a professional vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on a percentage of the vat reclaim amount after it has been approved and will not charge any fees if the claim doesn’t materialize. This facility ought to be accepted by you to avoid paying money out of your pocket to the agent since vat claims usually take between four to eight months to get to an effective conclusion.
You will first have to register yourself online at 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 have 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 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 your UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. If you regularly take part in trade shows in member eu countries and pay vat in those countries, or import goods into the UK where vat has already been paid then you should opt for vat refunds as this move will lower the price of your goods while allowing 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 means to recover any tax that has previously been paid on services or goods used 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 for you and just collect fees whenever your refund claim is approved.