As a vat registered trader in Britain as in 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 was already charged, even in another eu country, you can certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you are able to claim vat back only on services and goods linked to your organization and 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 the UK. It is possible to reclaim vat charged regardless of the rates, be it the regular, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods apart from certain exceptions.
Since 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 read this. Several agents will charge a fee based on a percentage of the vat reclaim amount once it has been approved and won’t charge any fees in the event the claim does not materialize. This facility should be accepted by you to avoid paying any money out of your pocket to your agent since vat claims usually take between four to 8 months to get to an effective conclusion.
You will 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 wish 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 also may additionally have 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 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 whenever you transfer it to the UK bank account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds into 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 has already been paid then you should go for vat refunds since 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 should explore all legal means to recover any tax which has previously 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 the same for you and just collect fees when your refund claim is eligible.