Being 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. If you have purchased goods or services where vat has already been charged, even in another eu country, you can certainly claim that vat amount back to give a boost to the business cash-flow.
As a business you can claim vat back only on services and goods linked to your business but not with regards to your 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. You can www.vatvalidation.com/vat reclaim vat charged 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 as well as certain exceptions.
Since the procedure for filing for vat refunds is fairly complex and time consuming, especially for services or goods imported from other eu countries, you should utilize the assistance of an expert vat agent that is totally familiar with the most up-to-date uk vat and eu vat rules. Several agents charge you 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 not pay money from your pocket to the agent since vat claims usually take between four to 8 months to get to an effective conclusion.
You will first need to register yourself online at the hmrc vat website if you want to make use of all vat services provided by the department. Even though you wish to file a vat claim for vat paid in a foreign eu country, you 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 might also have to send additional documents like your vat certificate along with the original vat invoice, if desired by that country. If all your documents are found to be in order in 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 changed into sterling pounds whenever you transfer it to the UK banking account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds in your business. If 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 opt for vat refunds since this move will lower the cost of your goods while enabling you to legally claim doubly paid tax back from the government.
When you do turn into a vat registered trader in the UK then you should explore all legal means to recover any tax which has previously been paid on services or goods utilized by your organization. You don’t need to invest your own time or staff while making vat claims since a capable vat agent can do precisely the same on your behalf and only collect fees when your refund claim is approved.