Being a vat registered trader in the UK like many other eu countries which have adopted VAT or value added tax, you should make sure to file 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 back to provide a boost to the business cash-flow.
As a business you are able to claim vat back only on goods and services linked to your business and not for your personal use. This vat is known as vatcontrol.com/vat input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in Britain. You can reclaim vat charged irrespective of the rates, whether it is the standard, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods apart from certain exceptions.
Considering that the process of filing for vat refunds is fairly complex and time-consuming, especially for services or goods imported from other eu countries, you should use the services 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 the amount of the vat reclaim amount once it has been approved and will not charge any fees if ever the claim does not materialize. This facility ought to 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 will first have to register yourself online with the hmrc vat website if you want to make use of all vat services provided by the department. Even if you wish to file a vat claim for vat paid in a foreign eu country, you will 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 the application to the mentioned country and you may additionally 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 in 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 banking account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds in your business. If 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 was already paid then you certainly should go for vat refunds since this move will lower the cost of your goods while allowing 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 services or goods used 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 for you and just collect fees when your refund claim is approved.