As a vat registered trader in Britain like a number of other eu countries that have adopted VAT or value added tax, you should ensure to file 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 can certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you can claim vat back only on services and goods linked to your organization but not with regards to your use http://vatvalidation.com/vat. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in Britain. It is possible to reclaim vat charged regardless of the rates, be it the standard, reduced or zero rate. However, you can expect to 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 services or goods imported from other eu countries, you should use the assistance of a professional vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules website. Several agents will charge a fee based on a amount of the vat reclaim amount once it has been approved and won’t charge any fees in the event the claim doesn’t materialize. This facility should be accepted by you to not pay money out of your pocket to your agent since vat claims usually take between four to eight months to get to an effective conclusion.
You will first have to register yourself online with the hmrc vat website if you want to use all vat services provided 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 also provide all necessary vat documents including vat receipts so that your claim can 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 can be changed into sterling pounds whenever you transfer it to the UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds into your business. If 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 should go for vat refunds as this move will lower the cost of your goods while allowing 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 definitely should explore all legal ways to recover any tax that has already been paid on goods or services used by your organization. You don’t need to invest your personal time or staff while making vat claims since a competent vat agent is capable of doing the same on your behalf and just collect fees whenever your refund claim is eligible.