If you’re a vat registered trader in Britain you would then need to pay vat on most services and goods but are you aware that claiming vat back can enhance your business income? In case you have already paid vat once on any goods or services necessary for your company or paid vat on it in another eu country then you can certainly submit an application for a vat refund.
Most eu countries now utilize the system of vat or value added tax on movement of goods and services as a means of collecting more revenue and plugging tax leaks. Great Britain too has shifted to vat and if you operate a company in Britain then you will have to apply for https://vatcontrol.com vat registration when your last Twelve month sales turnover touches ?70,000. Being a vat registered trader you will need to pay and collect vat on all purchases and sales in connection with your business depending on the classification of these goods and services according to the HM Revenue and Customs or hmrc vat department.
However, in order to avoid double taxation on such goods and services, the hmrc department has established vat rules that will permit you to definitely claim vat back on any goods or services purchased for your business. This amount may be recovered even though you have paid that vat in another eu country that follows vat, provided you are able to show documentary proof that includes the vat invoice or vat receipt. In case you have imported goods to the UK after paying vat in the nation of origin or have attended a trade fair inside a foreign eu country where vat has been charged for you then it may be claimed back as soon as you fill the required vat reclaim form.
You should hire an excellent vat agent with complete knowledge of uk vat and eu vat rules so your vat refund claim is passed in the shortest time possible. You’ll have a time frame of 9 months following the end of the calendar year after you had first paid your vat on those services or goods. You can use several online vat services provided by hmrc vat including filing online claims for vat refunds. You will have to register on the hmrc website before you can fill up the mandatory online vat form for vat reclaim. The form is then forwarded to the member eu country where you may have paid vat initially, together with scans of vat invoices that you might have to attach to the application.
As soon as you receive a confirmation usually within 15 days of receipt of your refund claim, it will take around 4 months for your claim to be approved from that member country before you can get your vat back. In the event any other clarification or documents are required then you should expect a delay of 4 more months and therefore it is vital to get it right the first time itself. Your vat refund can be deposited in a banking account which you specify within or outside the UK. However, this amount will be in the currency of the nation of origin and will need to be converted into sterling pounds prior to it being transferred into your UK bank account.
Although the process to reclaim vat back is a bit tedious, a competent vat agent can apply for vat refunds as your representative and notify you about the status of your applications. The reality is that claiming vat back can certainly enhance your business income by pumping back that double-taxed amount directly into your business.