Being a vat registered trader in the UK as in 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 services or goods where vat was already charged, even in another eu country, you can certainly claim that vat amount back to give a boost to the business cash-flow.
As a business you can claim vat back only on services and goods related 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, whether it is the regular, reduced or zero rate. However, you can expect to not be able to claim vat on vat exempt goods apart from certain exceptions.
Considering that the procedure for filing for vat refunds is fairly complex and time consuming, especially for services or goods imported from other eu countries, you should use the assistance of an expert vat agent that’s totally familiar with the most up-to-date uk vat and eu vat rules additional reading. Several agents charge you a fee based on a percentage of the vat reclaim amount once it has been approved and will not charge any fees in the event the claim doesn’t materialize. This facility should be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between four to eight months to come to an effective conclusion.
You may first have to register yourself online with the hmrc vat website if you wish to make use of all vat services offered by the department. Even if you want to file a vat claim for vat paid in a foreign eu country, you still need 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 your application to the mentioned country and you may additionally have to send additional documents like your vat certificate together 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 converted into sterling pounds when you transfer it to the UK bank account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds in your business. In the event you regularly take part 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 since 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 UK then you definitely should explore all legal ways to recover any tax that has previously been paid on services or goods used by your business. 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.