As a vat registered trader in the UK like 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 has already been charged, even in another eu country, you can certainly claim that vat amount to provide a boost to your business cash-flow.
As being a business you are able to claim vat back only on services and goods related 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.com that handles customs, excise and vat departments in the UK. You can reclaim vat charged regardless of the rates, whether it is the standard, reduced or zero rate. However, you can expect to not be able 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, especially for services or goods imported from other eu countries, you should utilize the services of an expert vat agent that is totally acquainted with the latest uk vat and eu vat rules. Several agents will charge a fee based on the percentage of the vat reclaim amount after it has been approved and won’t charge any fees if 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 eight months to get to a successful conclusion.
You will first need 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 still have 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 the application to the mentioned country and you also may additionally have to send additional documents like your vat certificate together with the original vat invoice, if desired by that country. If all of 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 converted into sterling pounds whenever you transfer it to the UK banking account.
Reclaiming vat can provide 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 definitely should explore all legal ways to recover any tax that has previously been paid on goods or services used by your business. You need not invest your own time or staff while making vat claims since a capable vat agent can do precisely the same on your behalf and only collect fees when your refund claim is eligible.