As a vat registered trader in the UK as in a number of other eu countries which 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 was already charged, even in another eu country, you are able to certainly claim that vat amount to give a boost to the business cash-flow.
As being a business you can claim vat back only on goods and services related to your business and not with regards to your 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 the UK. You can www.vatvalidation.com/vat reclaim vat charged regardless 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.
Considering that 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 services of a professional vat agent that is totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on a amount of the vat reclaim amount after it has been approved and will not charge any fees if the claim doesn’t materialize. This facility ought to be accepted by you to avoid paying any money out of 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 want to file a vat claim for vat paid in a foreign eu country, you will 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 also might also need to send additional documents like 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 the UK banking 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 go for vat refunds as 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 United Kingdom then you should explore all legal ways to recover any tax which has already been paid on services or goods utilized by your business. You don’t need to invest your personal time or staff while making vat claims since a capable vat agent is capable of doing precisely the same for you and just collect fees whenever your refund claim is approved.