As a vat registered trader in the UK like 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. In case you have purchased goods or services where vat was already charged, even in another eu country, you are able to certainly claim that vat amount to give a boost to the business cash-flow.
As a business you are able to claim vat back only on goods and services related to your business but 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 Britain. It is possible to vatvalidation.com/vat reclaim vat charged regardless 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 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 a professional vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on a amount of the vat reclaim amount after 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 not pay any money from your pocket to the agent since vat claims usually take between four to 8 months to come to a successful conclusion.
You may first have to register yourself online with the hmrc vat website if you want to use 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 will still have 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 the application to the mentioned country and you also may additionally have to send additional documents such as your vat certificate along 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 when you transfer it to your UK bank account.
Reclaiming vat provides 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 certainly 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.
When you do turn into a vat registered trader in the United Kingdom then you definitely should explore all legal ways to recover any tax that has previously been paid on services or goods used by your organization. You need not invest your own time or staff while making vat claims since a competent vat agent can do precisely the same for you and only collect fees whenever your refund claim is approved.