Being a vat registered trader in Britain as in many 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 services or goods where vat was already charged, even in another eu country, you can certainly claim that vat amount back to provide a boost to your business cash-flow.
As being a business you are able to claim vat back only on goods and services linked 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 Britain. You can reclaim vat charged vatverification irrespective of the rates, whether it is the regular, reduced or zero rate. However, you can expect to be unable 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, especially for services or goods imported from other eu countries, you should utilize the assistance of a professional vat agent that’s totally acquainted with the latest uk vat and eu vat rules. Several agents charge you a fee based on the amount of the vat reclaim amount after it has been approved and will not charge any fees if ever the claim does not materialize. This facility should be accepted by you to avoid paying 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 need 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 still have 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 the application to the mentioned country and you might also 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 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 your UK bank account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. In the event you regularly participate 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 opt for vat refunds since this move will lower the price 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 United Kingdom then you should explore all legal means to recover any tax that has already been paid on services or goods 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 precisely the same on your behalf and only collect fees whenever your refund claim is approved.