If you’re a vat registered trader in Britain then you would need to pay vat on many services and goods but did you know that claiming vat back can improve your business income? In case you have already paid vat once on any goods or services necessary for your company or paid vat on it even in another eu country then you can certainly submit 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 shifted to vat and when you run a company in Britain then you’ll have to apply for vat registration when your last 12 month sales turnover touches ?70,000 http://checkvatnumber.com. As a vat registered trader you will have to pay and collect vat on all purchases and sales related to your company depending on the classification of these goods and services as per the HM Revenue and Customs or hmrc vat department.
However, to prevent double taxation on such goods and services, the hmrc department has produced vat rules that will allow you to 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 follows vat, provided you are able to show documentary proof that includes the vat invoice or vat receipt read more. If you have imported goods to the UK after paying vat in the country of origin or have attended a trade fair in a foreign eu country where vat is charged for you then these can be claimed back as soon as you fill up the necessary vat reclaim form.
You need to 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’ll have a time frame of 9 months after the end of the calendar year after you had first paid your vat on those goods or services. You can use several online vat services offered by hmrc vat including filing online claims for vat refunds. You will have to register at the hmrc website before you fill up the required online vat form for vat reclaim. The form is then forwarded to the member eu country where you may have paid vat initially, along with scans of vat invoices that you might need to affix to the application.
Once you receive a confirmation usually within 15 days of receipt of the refund claim, it will require around 4 months for the claim to be approved from that member country before you can get your vat back. In case any other clarification or documents are required then you definitely should expect a delay of four more months and therefore it is vital to get it right the very first time itself. Your vat refund may be deposited in a banking account which 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 to your UK bank account.
Even though the process to reclaim vat back is a little tedious, a competent vat agent can apply for vat refunds on your behalf and notify you about the status of your applications. The fact is that claiming vat back can indeed enhance your business cash flow by pumping back that double-taxed amount back into your business.