Being a vat registered trader in Britain as in a number of other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. In case you have purchased services or goods where vat 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 can claim vat back only on services and goods related to your organization and not with regards to your use. This vat is known as input tax by the HM Revenue and Customs or hmrc department vatnumbers that handles customs, excise and vat departments in Britain. It is possible to reclaim vat charged irrespective 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 apart from 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 use the assistance of a professional vat agent that is totally acquainted 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 the claim doesn’t materialize. This facility should be accepted by you to not pay 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 with the hmrc vat website if you wish to make use of all vat services provided by the department. Even if you want 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 can be processed further. Hmrc will forward your application to the mentioned country and you might also need to send additional documents like your vat certificate along with the original vat invoice, if desired by that country. If all of 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 when 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. If you regularly participate in trade shows 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 price 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 which has previously been paid on goods or services 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 precisely the same on your behalf and just collect fees whenever your refund claim is approved.
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