Being a vat registered trader in Britain like 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. In case you have purchased goods or services where vat vat check has already been charged, even in another eu country, you are able to certainly claim that vat amount back to give a boost to the business cash-flow.
As being a business you are able to claim vat back only on services and goods linked to your organization but not for your personal use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in Britain. It is possible to reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you can expect to be unable to claim vat on vat exempt goods as well as certain exceptions.
Since the procedure for filing for vat refunds is fairly complex and time consuming, particularly for services or goods imported from other eu countries, you should use the assistance of an expert vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on the amount of the vat reclaim amount once it has been approved and will not charge any fees if ever the claim doesn’t materialize. This facility should be accepted by you to not pay any money out of your pocket to the agent since vat claims usually take between four to 8 months to come to an effective conclusion.
You may first need to register yourself online at the hmrc vat website if you want 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 have to make an application 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 may additionally have to send additional documents such as your vat certificate along with the original vat invoice, if desired by that country. If all 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 changed into sterling pounds whenever 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. In the event you regularly take part in trade shows in member eu countries and pay vat in those countries, or import goods to the UK where vat has already been paid then you should opt for vat refunds as 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 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 the same for you and just collect fees when your refund claim is approved.