As 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. If you have purchased goods or services where vat was already charged, even in another eu country, you are able to certainly claim that vat amount back to give a boost to the business cash-flow.
As being a business you can claim vat back only on services and goods linked to your organization but not for your personal use http://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 the UK. You can 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.
Considering that 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 services of a professional vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules additional reading. Several agents will charge a fee based on a percentage of the vat reclaim amount once it has been approved and will not charge any fees if ever the claim doesn’t materialize. This facility ought to be accepted by you to not pay any money out of your pocket to the agent since vat claims usually take between four to 8 months to come to an effective conclusion.
You will first need to register yourself online with the hmrc vat website if you wish to make use of all vat services offered by the department. Even if you want to file a vat claim for vat paid in a foreign eu country, you will still need to apply for vat reclaim with hmrc first and also provide all necessary vat documents including vat receipts so that your claim can be processed further. Hmrc will forward the application to the mentioned country and you might also 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 the UK bank account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds into your business. In the event 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 should go 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 definitely should explore all legal ways to recover any tax that has already been paid on goods or services used by your business. You need not invest your own time or staff while making vat claims since a capable vat agent is capable of doing precisely the same on your behalf and just collect fees whenever your refund claim is eligible.