Being a vat registered trader in Britain like a number of other eu countries which have adopted VAT or value added tax, you should make sure to file for for vat claims to reclaim vat back. In case you have purchased goods or services where vat was already 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 can claim vat back only on goods and services linked to your business but not with regards to your use. This vat is known as input tax by the HM Revenue and Customs or hmrc department vatnumbers.com that handles customs, excise and vat departments in the UK. You can 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 as well as 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 use the services of an expert vat agent that’s totally familiar with the latest uk vat and eu vat rules. Several agents charge you a fee based on a percentage of the vat reclaim amount after it has been approved and won’t charge any fees if ever the claim doesn’t materialize. This facility ought to be accepted by you to not pay any money out of your pocket to your agent since vat claims usually take between four to 8 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 if you want to file a vat claim for vat paid in a foreign eu country, you still have 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 might also need to send additional documents such as your vat certificate together 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 may be changed into sterling pounds when you transfer it to the UK bank account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds into your business. If you regularly take part in industry events in member eu countries and pay vat in those countries, or import goods into the UK where vat was already paid then you should go for vat refunds as 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 United Kingdom then you should explore all legal ways to recover any tax which has already been paid on goods or services used by your organization. You don’t need to invest your personal time or staff while making vat claims since a capable vat agent is capable of doing precisely the same for you and only collect fees when your refund claim is approved.