As a vat registered trader in the UK like many 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 goods or services where vat has already been 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 are able to claim vat back only on services and goods related to your business and not for your personal use https://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, whether it is the standard, reduced or zero rate. However, you can expect to not be able to claim vat on vat exempt goods as well as certain exceptions.
Since the procedure for filing for vat refunds is quite complex and time consuming, especially for goods or services imported from other eu countries, you should use the services of an expert vat agent that is totally acquainted with the most up-to-date uk vat and eu vat rules full article. Several agents will charge a fee based on a amount of the vat reclaim amount once it has been approved and won’t charge any fees in the event the claim doesn’t materialize. This facility ought to be accepted by you to avoid paying any money out of your pocket to your agent since vat claims usually take between four to 8 months to come to an effective conclusion.
You will first have to register yourself online with the hmrc vat website if you wish to use all vat services offered by the department. Even though you wish to file a vat claim for vat paid in a foreign eu country, you will still have to apply 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 your application to the mentioned country and you also might also need to send additional documents such as your vat certificate along 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 can be changed into sterling pounds whenever you transfer it to your UK bank account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds in 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 was already paid then you should opt for vat refunds as 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 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 is capable of doing the same for you and just collect fees whenever your refund claim is approved.