As a vat registered trader in Britain as in many other eu countries which have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. If you have purchased goods or services where vat was already charged, even in another eu country, you can 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 services and goods related to your organization and not for your personal use. This vat is known as vatcontrol.com/vat input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. It is possible to reclaim vat charged regardless of the rates, whether it is the regular, 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, particularly for goods or services imported from other eu countries, you should use the services of an expert vat agent that is totally familiar with the latest uk vat and eu vat rules. Several agents charge you a fee based on a amount of the vat reclaim amount after it has been approved and won’t charge any fees if ever the claim does not materialize. This facility ought to be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between four to 8 months to come to a successful conclusion.
You may first need to register yourself online with the hmrc vat website if you want to make use of 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 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 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 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 can be converted into sterling pounds whenever 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. If 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 allowing you to legally claim doubly paid tax back from the government.
Once you do turn into a vat registered trader in the UK then you definitely should explore all legal means to recover any tax that has already been paid on services or goods utilized by your business. You need not invest your personal time or staff while making vat claims since a competent vat agent can do precisely the same for you and just collect fees when your refund claim is approved.