As a vat registered trader in Britain like many other eu countries which have adopted VAT or value added tax, you should ensure to file 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 can certainly claim that vat amount back to provide a boost to your business cash-flow.
As a business you can claim vat back only on services and goods linked to your business and not for your personal use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in Britain. It is possible to reclaim vat charged https://vatverification.com 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 process of filing for vat refunds is quite complex and time-consuming, particularly for goods or services imported from other eu countries, you should use the assistance of an expert 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 the percentage of the vat reclaim amount after 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 not pay money from your pocket to your agent since vat claims usually take between four to eight months to come to an effective conclusion.
You will first have to register yourself online at the hmrc vat website if you wish 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 will 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 may be processed further. Hmrc will forward the application to the mentioned country and you may additionally need to send additional documents like 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 your UK banking account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds in 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 go for vat refunds as 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 UK then you should explore all legal ways to recover any tax which has already been paid on services or goods utilized by your business. You don’t need to invest your own time or staff while making vat claims since a capable vat agent is capable of doing the same on your behalf and only collect fees whenever your refund claim is approved.