Being a vat registered trader in Britain as in a number of other eu countries that have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. If you have purchased services or goods where vat vat check has already been charged, even in another eu country, you are able to certainly claim that vat amount back to provide a boost to the business cash-flow.
As a business you are able to claim vat back only on goods and services linked to your business 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 the UK. You can reclaim vat charged regardless of the rates, be it the regular, 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 fairly complex and time consuming, particularly 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 a amount of the vat reclaim amount after it has been approved and will not charge any fees in the event the claim does not materialize. This facility should be accepted by you to not pay any money from your pocket to the agent since vat claims usually take between four to 8 months to get to an effective conclusion.
You may 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 if 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 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 might also have to send additional documents such as 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 changed into sterling pounds whenever you transfer it to the 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 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 go for vat refunds since this move will lower the cost of your goods while allowing 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 should explore all legal ways to recover any tax that has already been paid on services or goods utilized by your business. You don’t need to invest your personal time or staff while making vat claims since a competent vat agent can do the same on your behalf and just collect fees whenever your refund claim is eligible.