If you are a vat registered trader in the UK then you would have to pay vat on most services and goods but are you aware that claiming vat back can enhance your business cash flow? If you have already paid vat once on any services or goods required for your company or paid vat on it in another eu country then you can definitely make an application for a vat refund.
Most eu countries have adopted 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 moved to vat and if you operate a business http://vatverification.com in the UK then you’ll have to apply for vat registration once your last 12 month sales turnover touches ?70,000. As a vat registered trader you will need to pay and collect vat on all purchases and sales related to your business depending on the classification of those goods and services according to the HM Revenue and Customs or hmrc vat department.
However, to prevent double taxation on such goods and services, the hmrc department has established vat rules that will allow you to claim vat back on any goods or services purchased for your business. This amount can be recovered even if you have paid that vat in another eu country that 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 country of origin or have attended a trade fair in a foreign eu country where vat is charged for you then it may be claimed back as soon as you fill the necessary vat reclaim form.
You should hire an excellent vat agent with complete understanding of uk vat and eu vat rules so that 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 calendar year once you had first paid your vat on those services or goods. You may use several online vat services offered by hmrc vat including filing online claims for vat refunds. You will have to register at the hmrc website before you can fill up the mandatory online vat form for vat reclaim. The form will then be sent to the member eu country in which you might have paid vat initially, together with scans of vat invoices that you might have to attach to the application.
As soon as you get a confirmation usually within 15 days of receipt of your refund claim, it will require around 4 months for the claim to be approved from that member country before you can get your vat back. In the event any other clarification or documents are required then you definitely should expect a delay of 4 more months and therefore it is vital to get it right the first time itself. Your vat refund may be deposited in any bank account that you specify within or outside the UK. However, this amount will be in the currency of the nation of origin and will have to be changed into sterling pounds prior to it being transferred into your UK banking account.
Even though the process to reclaim vat back is a little tedious, a competent vat agent can apply for vat refunds as your representative and inform you about the status of the applications. The fact is that claiming vat back can indeed enhance your business income by pumping back that double-taxed amount back into your business.