Being a vat registered trader in Britain like a number of other eu countries that have adopted VAT or value added tax, you should make sure to file for vat claims to reclaim vat back. If you have purchased goods or services where vat has already been charged, even in another eu country, you can certainly claim that vat amount back to give a boost to the business cash-flow.
As being a business you are able to claim vat back only on goods and services linked to your organization and not for your personal use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in Britain. It is possible to reclaim vat charged vatverification.com regardless of the rates, be it the regular, 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 goods or services imported from other eu countries, you should utilize the services of a professional vat agent that’s totally familiar with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on the percentage of the vat reclaim amount after it has been approved and won’t charge any fees in the event the claim does not materialize. This facility ought to be accepted by you to not pay any money from your pocket to your agent since vat claims usually take between four to eight months to get to an effective conclusion.
You will first have to register yourself online with the hmrc vat website if you wish to use 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 apply for vat reclaim with hmrc first and in addition provide all necessary vat documents including vat receipts so that your claim can be processed further. Hmrc will forward your application to the mentioned country and you might also need to send additional documents such as your vat certificate together with the original vat invoice, if desired by that country. If all of 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 provides relief for your business by lowering costs and injecting vital funds into 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 was already paid then you certainly should go for vat refunds since this move will lower the price of your goods while allowing 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 means to recover any tax that has already been paid on services or goods utilized by your business. You don’t need to invest your own 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 approved.