Being a vat registered trader in Britain like a number of other eu countries that have adopted VAT or value added tax, you should ensure to file 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 are able to certainly claim that vat amount to give a boost to your business cash-flow.
As being a business you are able to claim vat back only on services and goods related to your organization but not with regards to your 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. You can reclaim vat charged vat verification irrespective of the rates, whether it is the standard, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods apart from 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 will charge a fee based on a amount 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 money from your pocket to your agent since vat claims usually take between four to eight months to get to a successful conclusion.
You may first need to register yourself online with the hmrc vat website if you wish 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 apply 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 may additionally have to send additional documents such as 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 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 take part in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat was already paid then you certainly should opt for vat refunds as this move will lower the cost 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 United Kingdom then you should explore all legal ways to recover any tax which has already 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 capable vat agent is capable of doing precisely the same for you and only collect fees whenever your refund claim is eligible.