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 make sure to file for for vat claims to reclaim vat back. If you have purchased goods or services where vat was already charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you can claim vat back only on goods and services related to your business but not for your personal use. 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 vatverification.com irrespective of the rates, be it 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.
Since 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 a professional vat agent that’s totally familiar with the latest uk vat and eu vat rules. Several agents will charge a fee based on a percentage of the vat reclaim amount after it has been approved and will not charge any fees if ever the claim doesn’t materialize. This facility should be accepted by you to not pay any money from your pocket to the agent since vat claims usually take between four to eight months to come to an effective conclusion.
You may first need to register yourself online at the hmrc vat website if you wish to make use of all vat services offered by the department. Even though 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 may 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 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 into 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 into the UK where vat was already paid then you should opt for vat refunds as this move will lower the price 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 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 can do precisely the same for you and only collect fees when your refund claim is eligible.