As a vat registered trader in Britain as in 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 goods or services where vat www.vatcheck.com/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 linked to your organization and 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 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 as well as certain exceptions.
Since the process of filing for vat refunds is fairly complex and time-consuming, particularly for services or goods imported from other eu countries, you should utilize the assistance of an expert vat agent that’s totally familiar with the latest uk vat and eu vat rules. Several agents will charge a fee based on the amount of the vat reclaim amount after it has been approved and won’t charge any fees in the event the claim doesn’t materialize. This facility ought to be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between four to eight months to get to a successful conclusion.
You may first need to register yourself online with the hmrc vat website if you want 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 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 can 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 at 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 your UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds into your business. If 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 United Kingdom then you should explore all legal ways 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 capable vat agent is capable of doing precisely the same on your behalf and just collect fees when your refund claim is approved.