As a vat registered trader in Britain like many other eu countries which have adopted VAT or value added tax, you should make sure to file for for vat claims to reclaim vat back. If 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 back to give a boost to your business cash-flow.
As being a business you can claim vat back only on goods and services linked to your business but not for your personal use. This vat is known as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. You can www.vatvalidation.com/vat reclaim vat charged regardless of the rates, whether it is the standard, 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 quite complex and time-consuming, particularly for goods or services imported from other eu countries, you should utilize the assistance of a professional vat agent that’s totally familiar with the latest uk vat and eu vat rules. Several agents charge you a fee based on a percentage of the vat reclaim amount once it has been approved and won’t charge any fees if ever the claim doesn’t materialize. This facility should be accepted by you to avoid paying money out of your pocket to your agent since vat claims usually take between four to eight months to come to an effective 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 if 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 can be processed further. Hmrc will forward the application to the mentioned country and you might also need to send additional documents such as 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 may be converted into sterling pounds whenever you transfer it to the UK bank account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds into your business. In the event you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat has already been paid then you certainly 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 should explore all legal means to recover any tax which has already been paid on goods or services utilized by your organization. You don’t need to invest your personal time or staff while making vat claims since a capable vat agent is capable of doing the same on your behalf and only collect fees whenever your refund claim is approved.