Being a vat registered trader in Britain like many other eu countries which have adopted VAT or value added tax, you should ensure to file for 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 are able to certainly claim that vat amount back to give a boost to your business cash-flow.
As being a business you are able to claim vat back only on goods and services related to your organization but not for your personal use. 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. You can www.vatvalidation.com/vat reclaim vat charged irrespective 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 procedure for 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 acquainted with the latest uk vat and eu vat rules. Several agents charge you a fee based on a amount of the vat reclaim amount once it has been approved and will not charge any fees if ever the claim does not materialize. This facility ought to be accepted by you to avoid paying 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 will first need to register yourself online at the hmrc vat website if you wish to use all vat services provided by the department. Even if you wish to file a vat claim for vat paid in a foreign eu country, you will still need 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 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 can be converted into sterling pounds whenever you transfer it to the UK bank account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. If you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods into the UK where vat was already paid then you certainly should opt for vat refunds as 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 definitely should explore all legal ways to recover any tax which has already been paid on services or goods used by your organization. You don’t need to invest your personal time or staff while making vat claims since a competent vat agent can do the same for you and just collect fees when your refund claim is approved.