As a vat registered trader in the UK like a number of other eu countries that have adopted VAT or value added tax, you should make sure to file for for vat claims to reclaim vat back. In case you have purchased goods or services where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to your business cash-flow.
As being a business you are able to claim vat back only on services and goods related to your organization but not for your personal use. 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 Britain. It is possible to reclaim vat charged vatverification regardless of the rates, be it the standard, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods apart from certain exceptions.
Since the process of filing for vat refunds is quite complex and time-consuming, particularly for goods or services imported from other eu countries, you should utilize the services of a professional vat agent that’s totally familiar with the latest 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 ever the claim does not materialize. This facility should be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between four to eight months to get to an effective conclusion.
You may first have to register yourself online at the hmrc vat website if you wish to make use of all vat services offered by the department. Even though 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 may be processed further. Hmrc will forward the application to the mentioned country and you also may additionally need to send additional documents like your vat certificate together 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 may be converted into sterling pounds whenever you transfer it to the UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. In the event you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods into the UK where vat was already paid then you should go for vat refunds as 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 UK then you should explore all legal means to recover any tax which has already been paid on goods or services utilized by your business. You don’t need to invest your own time or staff while making vat claims since a competent vat agent is capable of doing the same on your behalf and only collect fees whenever your refund claim is eligible.