Being 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 for vat claims to reclaim vat back. If you have purchased services or goods where vat was already charged, even in another eu country, you can certainly claim that vat amount back to provide 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 but not for your personal use. This vat is known as input tax by the HM Revenue and Customs or hmrc department vat numbers that handles customs, excise and vat departments in Britain. It is possible to reclaim vat charged irrespective of the rates, whether it is the standard, reduced or zero rate. However, you can expect to not be able to claim vat on vat exempt goods as well as 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 assistance of an expert vat agent that is totally familiar with the latest uk vat and eu vat rules. Several agents will charge a fee based on a amount 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 avoid paying any money out of your pocket to your agent since vat claims usually take between four to 8 months to get to an effective conclusion.
You may first have to register yourself online at the hmrc vat website if you wish to make use of all vat services offered by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you will 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 might also 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 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 whenever you transfer it to the UK bank account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. If you regularly take part 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 certainly should opt 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.
Once you do turn into a vat registered trader in the UK then you definitely should explore all legal ways to recover any tax that has already been paid on services or goods used by your organization. You don’t need to 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 when your refund claim is eligible.