Being a vat registered trader in the UK as in many other eu countries that 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 can certainly claim that vat amount to provide a boost to your business cash-flow.
As being a business you are able to claim vat back only on goods and services linked to your organization and 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 Britain. You can reclaim vat charged vatverification regardless of the rates, be it the regular, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods as well as certain exceptions.
Since the process of filing for vat refunds is quite complex and time-consuming, especially for services or goods imported from other eu countries, you should utilize the services of an expert vat agent that is totally familiar with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on the percentage of the vat reclaim amount once it has been approved and won’t charge any fees in the event the claim does not materialize. This facility should be accepted by you to avoid paying any money out of your pocket to the agent since vat claims usually take between four to eight months to get to a successful conclusion.
You will 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 though you want to file a vat claim for vat paid in a foreign eu country, you still need 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 the application to the mentioned country and you also 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 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 your UK bank account.
Reclaiming vat provides 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 into the UK where vat was already paid then you certainly should go 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 means to recover any tax which 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 the same on your behalf and only collect fees when your refund claim is approved.