As a vat registered trader in Britain as in many other eu countries which have adopted VAT or value added tax, you should make sure to file 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 are able to certainly claim that vat amount to give a boost to the business cash-flow.
As a business you are able to claim vat back only on goods and services related to your business and not for your personal use https://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, whether it is the standard, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods as well as certain exceptions.
Since the process of filing for vat refunds is fairly complex and time consuming, particularly for goods or services imported from other eu countries, you should use the assistance of a professional vat agent that is totally familiar with the latest uk vat and eu vat rules continue. Several agents charge you a fee based on the amount of the vat reclaim amount once it has been approved and won’t charge any fees if ever the claim doesn’t materialize. This facility should be accepted by you to avoid paying money from 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 with the hmrc vat website if you wish to make use of 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 will 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 might also need to send additional documents like your vat certificate together 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 can be converted into sterling pounds when you transfer it to your UK banking account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds in your business. In the event you regularly participate 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 go for vat refunds since this move will lower the cost 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 United Kingdom then you definitely should explore all legal means to recover any tax which has already been paid on goods or services utilized by your organization. You don’t need to invest your own time or staff while making vat claims since a competent vat agent can do the same for you and only collect fees when your refund claim is approved.