As a vat registered trader in Britain like many other eu countries which have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. If you have purchased services or goods where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to the business cash-flow.
As a business you can claim vat back only on services and goods related to your business and not with regards to your use. This vat is referred to as 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 regardless 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 quite complex and time-consuming, particularly for goods or services imported from other eu countries, you should use the services of a professional vat agent that is totally familiar with the latest uk vat and eu vat rules. Several agents charge you 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 should be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between four to eight months to come to an effective conclusion.
You may first have to register yourself online at 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 will still have to apply 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 your application to the mentioned country and you also might also 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 in 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 changed into sterling pounds whenever you transfer it to the UK bank account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds into your business. If you regularly participate in trade shows 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 cost of your goods while allowing you to legally claim doubly paid tax back from the government.
When you do turn into a vat registered trader in the United Kingdom then you should explore all legal means to recover any tax which has previously been paid on services or goods used by your organization. You need not invest your own time or staff while making vat claims since a capable vat agent can do precisely the same on your behalf and only collect fees when your refund claim is eligible.