Being a vat registered trader in Britain like a number of 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. If you have purchased goods or services 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 a business you can claim vat back only on goods and services related to your business and not with regards to your use. This vat is known as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. You can www.vatvalidation.com/vat reclaim vat charged regardless of the rates, whether it is the standard, reduced or zero rate. However, you can expect to be unable 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, particularly for goods or services imported from other eu countries, you should utilize the assistance of a professional vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on a amount of the vat reclaim amount once it has been approved and will not charge any fees if the claim does not materialize. This facility should be accepted by you to not pay money from your pocket to the agent since vat claims usually take between four to eight months to get to an effective conclusion.
You may first have to register yourself online at the hmrc vat website if you wish to make use of all vat services offered by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you still need to make an application for vat reclaim with hmrc first and also 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 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 your UK banking account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds into your business. In the event you regularly participate in trade shows 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 opt for vat refunds since this move will lower the cost of your goods while enabling 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 which has already been paid on goods or services used by your organization. You don’t need to invest your own time or staff while making vat claims since a capable vat agent is capable of doing the same for you and just collect fees whenever your refund claim is approved.