Being a vat registered trader in Britain as in a number of other eu countries that have adopted VAT or value added tax, you should make sure to file for 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 can 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 related 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 the UK. It is possible to vatvalidation.com/vat reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods apart from certain exceptions.
Since the process of filing for vat refunds is fairly 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 is totally familiar 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 if the claim does not materialize. This facility ought to be accepted by you to avoid paying any money out of your pocket to your 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 want to use all vat services offered by the department. Even though 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 have to send additional documents such as your vat certificate together 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 may be changed 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 into your business. If you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat has already been paid then you certainly should go for vat refunds as this move will lower the cost 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 UK then you definitely should explore all legal ways to recover any tax which has already been paid on services or goods used by your business. You don’t need to invest your own time or staff while making vat claims since a capable vat agent is capable of doing the same for you and only collect fees whenever your refund claim is approved.