Being a vat registered trader in the UK as in many other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. If 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 your business cash-flow.
As being a business you are able to claim vat back only on goods and services linked to your business and not with regards to your 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 Britain. It is possible to reclaim vat charged https://vatverification.com regardless of the rates, be it 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 quite complex and time consuming, especially for goods or services imported from other eu countries, you should use the services 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 the amount of the vat reclaim amount once it has been approved and won’t charge any fees in the event the claim does not 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 may first have to register yourself online with the hmrc vat website if you want 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 still need 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 may be processed further. Hmrc will forward the application to the mentioned country and you also may additionally have to send additional documents such as 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 can provide relief to your business by lowering costs and injecting vital funds in your business. If you regularly take part in trade shows in member eu countries and pay vat in those countries, or import goods into the UK where vat has already been paid then you certainly should opt for vat refunds as this move will lower the price of your goods while allowing 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 should explore all legal means to recover any tax which has previously been paid on goods or services used by your business. You don’t need to invest your personal time or staff while making vat claims since a competent vat agent is capable of doing precisely the same for you and just collect fees when your refund claim is eligible.