If you’re a vat registered trader in the UK you would then need to pay vat on many goods and services but are you aware that claiming vat back can enhance your business income? In case you have already paid vat once on any services or goods necessary for your business or paid vat on it even in another eu country then you can certainly make an application for a vat refund.
Most eu countries now utilize the system of vat or value added tax on movement of goods and services as a way of collecting more revenue and plugging tax leaks. The UK too has shifted to vat and if you run a business in Britain then you’ll have to make an application for vat registration when your last Twelve month sales turnover touches ?70,000. As a vat registered trader you will have to pay and collect vat on all purchases and sales in connection with your business depending on the classification of these goods and services as per the HM Revenue and Customs or hmrc vat department.
However, in order to avoid double taxation on such goods and services, the hmrc department has produced vat rules that will allow you to definitely claim vat back on any services or goods purchased for your business. This amount may be recovered even if you have paid that vat in another eu country that https://vatnumbersearch.com follows vat, provided you are able to show documentary proof which includes the vat invoice or vat receipt. In case you have imported goods into the UK after paying vat in the nation of origin or have attended a trade fair inside a foreign eu country where vat has been charged to you then it may be claimed back as soon as you fill the necessary vat reclaim form.
You should hire a proficient vat agent with complete understanding of uk vat and eu vat rules so your vat refund claim is passed in the shortest time possible. You’ll have a time frame of 9 months following the end of the year or so once you had first paid your vat on those goods or services. You may use several online vat services provided by hmrc vat including filing online claims for vat refunds. You will have to register on the hmrc website before you can fill up the required online vat form for vat reclaim. The form will then be forwarded to the member eu country where you may have paid vat initially, along with scans of vat invoices which you may need to affix to the application.
As soon as you receive a confirmation usually within 15 days of receipt of the refund claim, it will take around 4 months for the claim to be approved from that member country before you can get your vat back. In case any additional clarification or documents are required then you definitely should expect a delay of four more months and therefore it is essential to have it right the first time itself. Your vat refund may be deposited in a bank account that you specify within or outside Britain. However, this amount will be in the currency of the country of origin and will have to be converted into sterling pounds prior to it being transferred to your UK banking account.
Although the process to reclaim vat back is a little tedious, a competent vat agent can apply for vat refunds on your behalf and inform you about the status of the applications. The reality is that claiming vat back can certainly enhance your business cash flow by pumping back that double-taxed amount back into your company.