Being a vat registered trader in Britain as in many other eu countries which 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 services or goods where vat has already been charged, even in another eu country, you can certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you are able to claim vat back only on goods and services related to your organization 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 Britain. It is possible to reclaim vat charged vat verification regardless of the rates, be it the regular, reduced or zero rate. However, you will usually 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 goods or services imported from other eu countries, you should use the assistance of an expert vat agent that’s totally familiar 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 once it has been approved and will not charge any fees if the claim doesn’t materialize. This facility should be accepted by you to not pay money out of your pocket to the agent since vat claims usually take between four to eight months to come to a successful conclusion.
You will first need to register yourself online with the hmrc vat website if you wish 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 make an application 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 your application to the mentioned country and you may additionally need to send additional documents such as your vat certificate along 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 when you transfer it to the UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. In the event you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat was already paid then you certainly should opt for vat refunds since this move will lower the price of your goods while enabling 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 that has previously been paid on services or goods used by your organization. You don’t need to invest your personal time or staff while making vat claims since a capable vat agent is capable of doing precisely the same for you and only collect fees when your refund claim is approved.