If you are a vat registered trader in Britain then you would need to pay vat on most goods and services but did you know that claiming vat back can enhance your business income? In case you have already paid vat once on any services or goods required for your business or paid vat on it even in another eu country then you can certainly make an application for a vat refund.
Most eu countries have adopted the system of vat or value added tax on movement of products and services as a means of collecting more revenue and plugging tax leaks. Great Britain too has moved to vat and when you run a company in the UK then you will need to apply for vat registration once your last 12 month sales turnover touches ?70,000. As a vat registered trader you will have to pay and collect vat on all purchases and sales in connection with your company according to the classification of those products or services as per the HM Revenue and Customs or hmrc vat department.
However, in order to avoid double taxation on such services and goods, the hmrc department has established vat rules that will allow you to definitely claim vat back on any goods or services purchased for your business. This amount may be recovered even though you have paid that vat in another eu country that http://vatnumbersearch.com follows vat, provided you are able to show documentary proof which includes the vat invoice or vat receipt. In case you have imported goods to the UK after paying vat in the nation of origin or have attended a trade fair inside a foreign eu country where vat is charged for you then these can be claimed back as soon as you fill the necessary vat reclaim form.
You should hire an excellent vat agent with complete understanding of uk vat and eu vat rules so that your vat refund claim is passed within the shortest time possible. You will have a time frame of 9 months after the end of the calendar year once you had first paid your vat on those services or goods. You can use several online vat services offered by hmrc vat including filing online claims for vat refunds. You will need to register on the hmrc website before you can fill up the mandatory online vat form for vat reclaim. The form is then forwarded to the member eu country where you might have paid vat initially, together with scans of vat invoices which you may need to affix to your application.
As soon as you receive a confirmation usually within 15 days of receipt of your refund claim, it will take around 4 months for your claim to be approved from that member country before you can get your vat back. In case any other clarification or documents are needed then you definitely should expect a delay of four more months and therefore it is vital to have it right the very first time itself. Your vat refund can be deposited in any banking account that you specify within or outside Britain. However, this amount will be in the currency of the nation of origin and will need to be changed into sterling pounds before it can be transferred into your UK banking account.
Although the process to reclaim vat back is a bit tedious, an efficient vat agent can apply for vat refunds as your representative and inform you about the status of your applications. The reality is that claiming vat back can indeed improve your business income by pumping back that double-taxed amount directly into your company.