Being a vat registered trader in Britain like many other eu countries that have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. In case you have purchased goods or services where vat vat check has already been charged, even in another eu country, you can certainly claim that vat amount to give 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 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 reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods as well as certain exceptions.
Since the process of filing for vat refunds is quite complex and time consuming, especially for goods or services imported from other eu countries, you should utilize the assistance of a professional vat agent that’s totally familiar with the most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on a percentage of the vat reclaim amount once it has been approved and won’t charge any fees in the event the claim doesn’t materialize. This facility ought to be accepted by you to not pay money from your pocket to the agent since vat claims usually take between four to 8 months to come to a successful conclusion.
You will first have to register yourself online at the hmrc vat website if you want to make use of all vat services provided by the department. Even if you want to file a vat claim for vat paid in a foreign eu country, you still have to apply 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 might also need to send additional documents like your vat certificate together 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 can be converted 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 in your business. In the event you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat was already paid then you should opt 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.
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 which has previously been paid on services or goods used by your business. You don’t need to invest your personal time or staff while making vat claims since a competent vat agent is capable of doing precisely the same on your behalf and just collect fees whenever your refund claim is eligible.