As a vat registered trader in Britain as in a number of other eu countries that have adopted VAT or value added tax, you should make sure to file for vat claims to reclaim vat back. If you have purchased goods or services where vat has already been charged, even in another eu country, you can certainly claim that vat amount to give a boost to your business cash-flow.
As a business you can claim vat back only on goods and services linked 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 http://vatvalidation.com/vat reclaim vat charged regardless of the rates, be it the regular, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods apart from certain exceptions.
Since the procedure for filing for vat refunds is fairly complex and time consuming, especially for services or goods imported from other eu countries, you should use the services of an expert vat agent that’s totally familiar with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on a percentage of the vat reclaim amount once it has been approved and will not charge any fees if the claim doesn’t materialize. This facility ought to be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between four to 8 months to come to an effective conclusion.
You may first need to register yourself online with the hmrc vat website if you wish to use all vat services provided by the department. Even though 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 your application to the mentioned country and you also might also have 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 in 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 converted into sterling pounds whenever you transfer it to the UK bank account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds into your business. In the event you regularly take part in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat has already been paid then you certainly should opt for vat refunds since this move will lower the cost 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 definitely should explore all legal means to recover any tax that has previously been paid on goods or services utilized by your business. You need not invest your own time or staff while making vat claims since a capable vat agent is capable of doing precisely the same for you and just collect fees whenever your refund claim is approved.