As a vat registered trader in the UK like many other eu countries which have adopted VAT or value added tax, you should make sure to file for vat claims to reclaim vat back. In case you have purchased services or goods where vat was already charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to the business cash-flow.
As being a business you are able to claim vat back only on services and goods related to your organization but 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. It is possible to reclaim vat charged vatverification.com irrespective of the rates, whether it is 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 process of 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 an expert vat agent that is totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on the percentage of the vat reclaim amount after 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 eight months to come to a successful conclusion.
You may first need to register yourself online with the hmrc vat website if you want to make use of all vat services offered by the department. Even though 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 the 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 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 your UK bank account.
Reclaiming vat provides relief for 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 into the UK where vat was already paid then you certainly should opt for vat refunds as this move will lower the cost 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 United Kingdom then you should explore all legal ways to recover any tax which has previously been paid on goods or services used by your business. You don’t need to invest your personal time or staff while making vat claims since a capable vat agent can do precisely the same on your behalf and just collect fees when your refund claim is approved.