As a vat registered trader in Britain like a number of other eu countries that have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. In case you have purchased goods or services where vat has already been charged, even in another eu country, you can certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you can claim vat back only on services and goods related to your business and not for your personal use. This vat is referred to as vatcontrol.com/vat 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, whether it is the regular, reduced or zero rate. However, you can expect to not be able 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 use the assistance of a professional vat agent that is totally acquainted with the most up-to-date 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 ever the claim does not materialize. This facility should be accepted by you to avoid paying any money out of your pocket to your agent since vat claims usually take between four to 8 months to come to an effective conclusion.
You will first need to register yourself online with the hmrc vat website if you want to use all vat services offered by the department. Even if you wish to file a vat claim for vat paid in a foreign eu country, you still need 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 your application to the mentioned country and you may additionally 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 can be changed into sterling pounds whenever you transfer it to the UK banking account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds into your business. If you regularly participate in industry events 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 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 definitely should explore all legal ways to recover any tax that has already been paid on goods or services utilized by your business. You need not invest your own time or staff while making vat claims since a capable vat agent can do the same for you and only collect fees whenever your refund claim is eligible.