As a vat registered trader in the UK 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 can certainly claim that vat amount to give a boost to your business cash-flow.
As being a business you are able to claim vat back only on services and goods related to your business and not with regards to your use http://vatvalidation.com/vat. 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. You can reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you will usually be unable 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, especially for goods or services imported from other eu countries, you should utilize the services of a professional vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules helpful hints. Several agents charge you a fee based on the amount 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 should be accepted by you to not pay any money out of 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 though you want 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 in addition 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 may additionally need to send additional documents such as 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 may be changed into sterling pounds whenever you transfer it to the 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 take part in trade shows in member eu countries and pay vat in those countries, or import goods to the UK where vat was already paid then you should go for vat refunds since this move will lower the cost of your goods while enabling you to legally claim doubly paid tax back from the government.
Once you do turn into a vat registered trader in the UK then you should explore all legal ways to recover any tax that 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 can do precisely the same on your behalf and only collect fees when your refund claim is approved.