As a vat registered trader in the UK like many 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. In case 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 give a boost to your business cash-flow.
As being a business you can claim vat back only on goods and services related to your organization and not for your personal use. This vat is referred to as http://vatcontrol.com/vat input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. You can reclaim vat charged irrespective of the rates, be it the standard, reduced or zero rate. However, you will usually 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, particularly for services or goods imported from other eu countries, you should use the assistance of an expert vat agent that is totally acquainted with the latest uk vat and eu vat rules. Several agents charge you a fee based on a amount of the vat reclaim amount once it has been approved and won’t charge any fees if ever the claim doesn’t materialize. This facility should 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 get to a successful conclusion.
You may first need 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 will still need to make an application for vat reclaim with hmrc first and also provide all necessary vat documents including vat receipts so that your claim can be processed further. Hmrc will forward the application to the mentioned country and you also may additionally 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 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 changed into sterling pounds whenever you transfer it to your UK bank account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds into 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 has already been paid then you certainly should go for vat refunds since 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 should explore all legal means to recover any tax that has previously been paid on services or goods utilized by your organization. You don’t need to invest your personal time or staff while making vat claims since a competent vat agent is capable of doing precisely the same on your behalf and just collect fees whenever your refund claim is eligible.