Being a vat registered trader in Britain like many 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 goods or services where vat has already been 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 can claim vat back only on services and goods linked to your organization but not for your personal use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department vatnumbers that handles customs, excise and vat departments in the UK. You can reclaim vat charged irrespective of the rates, be it the regular, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods as well as 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 use the assistance of a professional vat agent that is totally acquainted with the latest 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 will not charge any fees if the claim does not materialize. This facility should be accepted by you to not pay any money out of your pocket to the agent since vat claims usually take between four to eight months to come to an effective conclusion.
You will first have to register yourself online at the hmrc vat website if you wish to make use of all vat services provided by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you will 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 may be processed further. Hmrc will forward the application to the mentioned country and you might also need to send additional documents like your vat certificate along with the original vat invoice, if desired by that country. If all 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 changed into sterling pounds whenever you transfer it to the UK bank account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds into 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 has already been paid then you should opt 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.
Once you do turn into a vat registered trader in the United Kingdom then you should explore all legal means to recover any tax that has already been paid on services or goods utilized by your business. You need not invest your personal time or staff while making vat claims since a capable vat agent can do precisely the same on your behalf and only collect fees whenever your refund claim is eligible.