Claiming vat back can enhance your business income

If you are a vat registered trader in the UK you would then have to pay vat on most goods and services but are you aware that claiming vat back can enhance your business income? If you have already paid vat once on any goods or services required for your business or paid vat on it even in another eu country then you can certainly submit an application for a vat refund.

Most eu countries have adopted the system of vat or value added tax on movement of products and services as a means of collecting more revenue and plugging tax leaks. The UK too has shifted to vat and if you operate a business in Britain then you will need to make an application for vat registration when your last 12 month sales turnover touches ?70,000 http://checkvatnumber.com. As a vat registered trader you will have to pay and collect vat on all purchases and sales related to your business depending on the classification of those goods and services as per the HM Revenue and Customs or hmrc vat department.

However, in order to avoid double taxation on such goods and services, the hmrc department has produced vat rules that will permit you to claim vat back on any goods or services purchased for your business. This amount can be recovered even if you have paid that vat in another eu country that follows vat, provided you are able to show documentary proof that includes the vat invoice or vat receipt bonuses. If you have imported goods into the UK after paying vat in the nation of origin or have attended a trade fair inside a foreign eu country where vat has been charged for you then it may be claimed back after you fill the necessary vat reclaim form.

You should hire a proficient vat agent with complete understanding of uk vat and eu vat rules so your vat refund claim is passed in the shortest time possible. You will have a time limit of 9 months following the end of the year or so after you had first paid your vat on those services or goods. You may use several online vat services offered by hmrc vat including filing online claims for vat refunds. You will need to register on the hmrc website before you can fill up the required online vat form for vat reclaim. The form will then be forwarded to the member eu country in which you may have paid vat initially, together with scans of vat invoices which you may need to affix to your application.

As soon as you get a confirmation usually within 15 days of receipt of the refund claim, it will take around 4 months for the claim to be approved from that member country before you can get your vat back. In the event any other clarification or documents are required then you definitely should expect a delay of four more months and therefore it is essential to have it right the first time itself. Your vat refund can be deposited in any bank account that you specify within or outside Britain. However, this amount will be in the currency of the nation of origin and will have to be changed into sterling pounds before it can be transferred to your UK bank account.

Even though the process to reclaim vat back is a little tedious, a competent vat agent can apply for vat refunds as your representative and notify you on the status of the applications. The reality is that claiming vat back can certainly improve your business cash flow by pumping back that double-taxed amount back into your business.