As a vat registered trader in Britain as in a number of 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 goods or services where vat has already been 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 are able to claim vat back only on goods and services linked to your business but not with regards to your use. This vat is known as input tax by the HM Revenue and Customs or hmrc department vatnumbers.com 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 will usually be unable to claim vat on vat exempt goods as well as certain exceptions.
Since the procedure for filing for vat refunds is quite complex and time-consuming, especially for services or goods imported from other eu countries, you should use the services of an expert vat agent that’s totally acquainted with the latest uk vat and eu vat rules. Several agents charge you a fee based on the amount of the vat reclaim amount after it has been approved and will not charge any fees if ever the claim does not materialize. This facility ought to be accepted by you to not pay any money from your pocket to the agent since vat claims usually take between four to 8 months to come to a successful conclusion.
You will first have to register yourself online at the hmrc vat website if you wish to make use of all vat services offered by the department. Even though you want 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 may be processed further. Hmrc will forward the application to the mentioned country and you also may additionally need to send additional documents like 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 banking account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds in your business. If you regularly take part 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 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.
When 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 previously 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 can do the same on your behalf and just collect fees when your refund claim is approved.