Being a vat registered trader in Britain like many other eu countries that have adopted VAT or value added tax, you should make sure to file for vat claims to reclaim vat back. If you have purchased services or goods where vat https://vatcheck.com/vat was already charged, even in another eu country, you can certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you are able to claim vat back only on goods and services linked to your organization but 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 reclaim vat charged irrespective of the rates, be it the regular, reduced or zero rate. However, you will usually not be able 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 goods or services imported from other eu countries, you should utilize the services of a professional vat agent that is totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on the percentage of the vat reclaim amount once it has been approved and won’t charge any fees if ever the claim does not materialize. This facility should be accepted by you to avoid paying any money from your pocket to the agent since vat claims usually take between four to eight months to get to a successful conclusion.
You may 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 though 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 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 might also need to send additional documents such as 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 can be changed into sterling pounds whenever you transfer it to the UK bank account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds into your business. If 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 price 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 means to recover any tax which has previously been paid on services or goods utilized by your business. 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 whenever your refund claim is eligible.