Being a vat registered trader in Britain like many 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. In case you have purchased services or goods where vat has already been charged, even in another eu country, you can certainly claim that vat amount to give a boost to your business cash-flow.
As being a business you can claim vat back only on goods and services linked to your organization but not with regards to your 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 Britain. It is possible to reclaim vat charged irrespective 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.
Since the procedure for filing for vat refunds is fairly complex and time consuming, particularly for services or goods imported from other eu countries, you should utilize the assistance of an expert vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on a amount of the vat reclaim amount once it has been approved and will not charge any fees in the event the claim does not materialize. This facility should be accepted by you to avoid paying money out of your pocket to the agent since vat claims usually take between four to eight months to get to a successful conclusion.
You may first have to register yourself online at the hmrc vat website if you want 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 will still need to make an application for vat reclaim with hmrc first and in addition 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 might also need 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 can be converted into sterling pounds when you transfer it to the UK banking account.
Reclaiming vat provides 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 into the UK where vat was already paid then you certainly 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 UK then you should explore all legal ways to recover any tax which has previously been paid on goods or services utilized by your organization. You don’t need to invest your own time or staff while making vat claims since a competent vat agent is capable of doing the same on your behalf and only collect fees when your refund claim is approved.