As a vat registered trader in Britain like 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. In case you have purchased services or goods where vat was already 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 a business you can claim vat back only on services and goods linked to your business but not for your personal use www.vatvalidation.com/vat. 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 the UK. You can reclaim vat charged irrespective of the rates, be it the standard, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods apart from certain exceptions.
Since the process of filing for vat refunds is quite complex and time-consuming, especially for goods or services imported from other eu countries, you should utilize the services of an expert vat agent that’s totally acquainted with the latest uk vat and eu vat rules read full report. 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 from your pocket to your agent since vat claims usually take between four to 8 months to get to a successful conclusion.
You will first have to register yourself online with the hmrc vat website if you wish to make use of all vat services offered by the department. Even if you want to file a vat claim for vat paid in a foreign eu country, you will still need to make an application 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 the application to the mentioned country and you also might also need to send additional documents like your vat certificate along with the original vat invoice, if desired by that country. If all 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 changed into sterling pounds when you transfer it to the UK banking account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds in your business. In the event 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 has already been paid then you should go for vat refunds since 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 should explore all legal means to recover any tax which has previously been paid on goods or services used by your organization. You need not invest your personal time or staff while making vat claims since a capable vat agent can do precisely the same for you and just collect fees when your refund claim is eligible.