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 vat claims to reclaim vat back. If you have purchased services or goods where vat was already 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 services and goods 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 www.vatnumbers.com that handles customs, excise and vat departments in the UK. You can reclaim vat charged regardless of the rates, whether it is the standard, 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 quite complex and time-consuming, especially for goods or services imported from other eu countries, you should utilize the assistance of a professional vat agent that’s totally acquainted 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 will not charge any fees if the claim doesn’t materialize. This facility should be accepted by you to avoid paying any 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 provided 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 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 also may additionally need to send additional documents such as 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 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 into the UK where vat has already been paid then you certainly should go for vat refunds since this move will lower the price of your goods while enabling 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 definitely should explore all legal means to recover any tax which has already been paid on services or goods utilized by your organization. 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 whenever your refund claim is approved.