Being a vat registered trader in Britain like a number of 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 goods or services where vat vat check was already charged, even in another eu country, you can certainly claim that vat amount back to give a boost to your business cash-flow.
As being a business you can claim vat back only on services and goods related to your business and not for your personal 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. You can reclaim vat charged irrespective of the rates, be it the standard, reduced or zero rate. However, you can expect to be unable to claim vat on vat exempt goods apart from certain exceptions.
Since the procedure for filing for vat refunds is fairly complex and time-consuming, particularly for services or goods imported from other eu countries, you should use the services of a professional vat agent that is totally acquainted with the latest uk vat and eu vat rules. Several agents charge you a fee based on a percentage of the vat reclaim amount once it has been approved and will not charge any fees in the event the claim does not materialize. This facility ought to be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between four to eight months to come to a successful conclusion.
You may first have to register yourself online with 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 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 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 converted 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 in your business. In the event you regularly participate in trade shows in member eu countries and pay vat in those countries, or import goods to the UK where vat has already been paid then you should go for vat refunds since this move will lower the price of your goods while allowing 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 should explore all legal ways to recover any tax which has previously been paid on services or goods used by your business. You don’t need to 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 approved.