Being a vat registered trader in Britain like many other eu countries that have adopted VAT or value added tax, you should ensure 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 to give a boost to your business cash-flow.
As a business you can claim vat back only on services and goods related to your organization and not for your personal use https://vatvalidation.com/vat. 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 Britain. You can reclaim vat charged irrespective of the rates, be it the regular, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods as well as certain exceptions.
Considering that the procedure for 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 a professional vat agent that is totally acquainted with the latest uk vat and eu vat rules homepage. Several agents charge you a fee based on a amount of the vat reclaim amount once it has been approved and won’t charge any fees in the event the claim does not materialize. This facility should be accepted by you to avoid paying money from your pocket to your agent since vat claims usually take between four to eight months to get to a successful conclusion.
You will first have to register yourself online at the hmrc vat website if you want to make use of 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 also 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 also may additionally have to send additional documents such as your vat certificate along 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 when you transfer it to your 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 into 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 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 utilized by your business. You need not invest your personal time or staff while making vat claims since a competent vat agent can do the same for you and only collect fees whenever your refund claim is eligible.