Being a vat registered trader in Britain like a number of other eu countries which have adopted VAT or value added tax, you should make sure to file for vat claims to reclaim vat back. In case you have purchased services or goods where vat was already charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to the business cash-flow.
As being a business you are able to claim vat back only on services and goods linked to your business and not for your personal use. This vat is referred to as vatcontrol.com/vat 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 regardless of the rates, be it the standard, reduced or zero rate. However, you can expect to be unable to claim vat on vat exempt goods as well as certain exceptions.
Considering that the process of filing for vat refunds is quite complex and time consuming, especially for goods or services imported from other eu countries, you should utilize the assistance of a professional vat agent that is totally acquainted with the latest uk vat and eu vat rules. Several agents charge you a fee based on a percentage of the vat reclaim amount after it has been approved and won’t 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 your 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 at the hmrc vat website if you wish to use all vat services provided by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you still need 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 the application to the mentioned country and you might also 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 can be converted into sterling pounds whenever you transfer it to your UK banking account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds into your business. In the event you regularly take part in industry events in member eu countries and pay vat in those countries, or import goods into the UK where vat has already been paid then you certainly 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 definitely should explore all legal ways to recover any tax which has already been paid on services or goods used by your organization. You need not invest your personal time or staff while making vat claims since a competent vat agent can do precisely the same for you and only collect fees when your refund claim is eligible.