As a vat registered trader in Britain as in a number of other eu countries that have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. In case you have purchased services or goods where vat vat check has already been charged, even in another eu country, you can certainly claim that vat amount to give a boost to the business cash-flow.
As being a business you are able to claim vat back only on goods and services linked to your business but not for your personal 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 reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods apart from certain exceptions.
Considering that 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 utilize 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 if ever the claim doesn’t materialize. This facility should 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 get to an effective conclusion.
You may first need to register yourself online at 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 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 have to send additional documents like 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 at 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 converted into sterling pounds whenever you transfer it to your UK bank account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. In the event 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 was already paid then you certainly should opt 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 UK then you definitely should explore all legal means to recover any tax that has previously been paid on goods or services utilized by your business. You need not invest your personal time or staff while making vat claims since a competent vat agent is capable of doing precisely the same on your behalf and just collect fees when your refund claim is approved.