Being a vat registered trader in the UK as in a number of other eu countries that 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 was already charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you can claim vat back only on goods and services linked to your organization and not for your personal use. This vat is referred to as https://vatcontrol.com/vat 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 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, especially for goods or services imported from other eu countries, you should utilize the assistance of an expert vat agent that’s totally familiar with the most up-to-date 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 will not charge any fees in the event the claim doesn’t materialize. This facility ought to be accepted by you to not pay 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 may first have to register yourself online with the hmrc vat website if you wish to use all vat services provided by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you still need to apply 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 have 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 changed into sterling pounds when you transfer it to your 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 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 certainly should opt 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.
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 used 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 precisely the same on your behalf and just collect fees when your refund claim is approved.