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 goods or services where vat vat check was already charged, even in another eu country, you are able to certainly claim that vat amount back to provide a boost to your business cash-flow.
As a business you are able to claim vat back only on services and goods linked 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 the UK. You can reclaim vat charged irrespective of the rates, be it the regular, reduced or zero rate. However, you will usually be unable 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 goods or services imported from other eu countries, you should utilize the services of an expert vat agent that’s totally acquainted with the latest uk vat and eu vat rules. Several agents charge you a fee based on the amount of the vat reclaim amount after it has been approved and will not charge any fees in the event the claim does not materialize. This facility ought to be accepted by you to not pay money out of your pocket to your agent since vat claims usually take between four to eight months to get to a successful conclusion.
You will first need to register yourself online with the hmrc vat website if you want to use all vat services offered by the department. Even if you want to file a vat claim for vat paid in a foreign eu country, you still have to make an application for vat reclaim with hmrc first and also 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 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 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 for your business by lowering costs and injecting vital funds in your business. If you regularly take part 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 should opt 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 UK then you should explore all legal ways to recover any tax which has previously been paid on goods or services 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.