As a vat registered trader in Britain as in many 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 services or goods where vat has already been charged, even in another eu country, you can 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 but not for your personal use. This vat is referred to as vatcontrol.com/vat 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 regardless of the rates, be it the standard, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods as well as certain exceptions.
Considering that the procedure for filing for vat refunds is fairly complex and time consuming, particularly for services or goods imported from other eu countries, you should use the assistance of a professional vat agent that’s totally familiar with the latest 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 will not charge any fees if ever the claim doesn’t materialize. This facility ought to 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 will first need to register yourself online at the hmrc vat website if you want to make use of all vat services provided by the department. Even though you wish 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 may be processed further. Hmrc will forward the application to the mentioned country and you might also 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 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 your UK banking account.
Reclaiming vat can provide 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 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.
When you do turn into a vat registered trader in the United Kingdom then you definitely should explore all legal means to recover any tax that has already been paid on goods or services utilized by your organization. You don’t need to invest your own time or staff while making vat claims since a competent vat agent is capable of doing precisely the same for you and just collect fees whenever your refund claim is approved.