As a vat registered trader in Britain as in a number of other eu countries that have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. If you have purchased services or goods where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount back to provide a boost to the business cash-flow.
As being a business you are able to claim vat back only on goods and services related to your business and not for your personal use. This vat is referred to as http://vatcontrol.com/vat input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in Britain. It is possible to reclaim vat charged irrespective of the rates, whether it is the standard, reduced or zero rate. However, you will usually 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 use the assistance of an expert vat agent that’s totally familiar with the latest uk vat and eu vat rules. Several agents will charge a fee based on a percentage of the vat reclaim amount after it has been approved and won’t 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 the 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 wish 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 need to apply 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 may additionally have 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 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 provides relief to your business by lowering costs and injecting vital funds in your business. If you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat was already paid then you certainly should go 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.
Once you do turn into a vat registered trader in the UK then you definitely should explore all legal means to recover any tax which has already been paid on goods or services utilized by your organization. You need not invest your own time or staff while making vat claims since a competent vat agent can do the same on your behalf and just collect fees when your refund claim is approved.