Being a vat registered trader in Britain as in a number of other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. If you have purchased services or goods where vat has already been charged, even in another eu country, you can certainly claim that vat amount back to give a boost to your business cash-flow.
As a business you are able to claim vat back only on goods and services linked to your business but not for your personal use www.vatvalidation.com/vat. This vat is known as 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, be it the standard, reduced or zero rate. However, you can expect to be unable to claim vat on vat exempt goods apart from certain exceptions.
Considering that the process of filing for vat refunds is fairly complex and time consuming, especially for goods or services imported from other eu countries, you should use the assistance of a professional vat agent that’s totally familiar with the latest uk vat and eu vat rules discover more. Several agents will charge a fee based on the amount of the vat reclaim amount after it has been approved and won’t charge any fees if the claim doesn’t materialize. This facility ought to 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 a successful conclusion.
You may first need to register yourself online at the hmrc vat website if you wish to use all vat services offered by the department. Even though you wish 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 your application to the mentioned country and you also may additionally need to send additional documents like 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 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 converted into sterling pounds when 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 trade shows in member eu countries and pay vat in those countries, or import goods into the UK where vat was already paid then you should go for vat refunds as this move will lower the price of your goods while enabling 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 should explore all legal ways to recover any tax that has previously been paid on goods or services used by your organization. You don’t need to invest your own time or staff while making vat claims since a competent vat agent is capable of doing precisely the same for you and only collect fees when your refund claim is eligible.