Being a vat registered trader in the UK as in a number of other eu countries that have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. If you have purchased services or goods where vat has already been charged, even in another eu country, you can certainly claim that vat amount to give a boost to the business cash-flow.
As being a business you are able to claim vat back only on services and goods linked to your organization but not with regards to your use http://vatvalidation.com/vat. 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. It is possible to reclaim vat charged irrespective of the rates, be it 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.
Considering that the process of filing for vat refunds is quite complex and time-consuming, particularly for services or goods imported from other eu countries, you should use the services of an expert vat agent that is totally familiar with the most up-to-date uk vat and eu vat rules helpful resources. Several agents will charge a fee based on the percentage of the vat reclaim amount once it has been approved and won’t charge any fees if the claim does not 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 a successful conclusion.
You will first need to register yourself online at the hmrc vat website if you wish to use 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 apply 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 might also need to send additional documents such as your vat certificate along with the original vat invoice, if desired by that country. If all of 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 into your business. If you regularly participate in trade shows 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 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 United Kingdom then you definitely should explore all legal means to recover any tax which 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 competent vat agent is capable of doing the same on your behalf and just collect fees whenever your refund claim is approved.