As a vat registered trader in the UK as in a number of other eu countries that have adopted VAT or value added tax, you should make sure to file for vat claims to reclaim vat back. If you have purchased services or goods where vat www.vatcheck.com/vat was already charged, even in another eu country, you are able to 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 organization and 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 the UK. It is possible to reclaim vat charged regardless of the rates, be it the regular, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods apart from certain exceptions.
Considering that the process of filing for vat refunds is fairly complex and time consuming, especially for goods or services imported from other eu countries, you should use the assistance of a professional vat agent that is totally familiar with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on the amount of the vat reclaim amount after it has been approved and won’t charge any fees if the claim does not materialize. This facility ought to be accepted by you to not pay money from your pocket to your agent since vat claims usually take between four to 8 months to come to a successful conclusion.
You will first need to register yourself online at the hmrc vat website if you want to make use of all vat services offered by the department. Even if you wish to file a vat claim for vat paid in a foreign eu country, you still need 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 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 may be changed into sterling pounds whenever you transfer it to your UK bank 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 was already paid then you certainly should opt 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.
When you do turn into a vat registered trader in the United Kingdom 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 need not invest your own time or staff while making vat claims since a competent vat agent can do precisely the same on your behalf and only collect fees whenever your refund claim is eligible.