As a vat registered trader in the UK like a number of other eu countries which 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 was already charged, even in another eu country, you are able to certainly claim that vat amount to give a boost to the business cash-flow.
As being a business you are able to claim vat back only on goods and services related to your organization and 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 http://vatvalidation.com/vat 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 utilize the services of a professional vat agent that’s 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 will not charge any fees if the claim doesn’t materialize. This facility ought to be accepted by you to avoid paying 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 have to register yourself online with the hmrc vat website if you want 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 will still have to apply for vat reclaim with hmrc first and also provide all necessary vat documents including vat receipts so that your claim may be processed further. Hmrc will forward your application to the mentioned country and you may additionally have to send additional documents such as 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 in 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 changed into sterling pounds whenever you transfer it to your UK bank account.
Reclaiming vat can provide relief for 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 was already paid then you certainly should opt for vat refunds since this move will lower the price of your goods while enabling you to legally claim doubly paid tax back from the government.
When you do turn into a vat registered trader in the United Kingdom then you should explore all legal ways to recover any tax which has previously been paid on goods or services utilized by your organization. You need not invest your own time or staff while making vat claims since a capable vat agent is capable of doing the same on your behalf and just collect fees when your refund claim is eligible.