As a vat registered trader in Britain as in a number of 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 goods or services where vat www.vatcheck.com/vat was already charged, even in another eu country, you can certainly claim that vat amount to provide 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 business and 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. It is possible to reclaim vat charged irrespective of the rates, be it the regular, reduced or zero rate. However, you can expect to be unable to claim vat on vat exempt goods apart from certain exceptions.
Considering that the procedure for filing for vat refunds is quite complex and time-consuming, especially for services or goods imported from other eu countries, you should utilize the services of a professional vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on the amount of the vat reclaim amount after it has been approved and won’t charge any fees if ever the claim doesn’t materialize. This facility ought to be accepted by you to not pay any money out of your pocket to your agent since vat claims usually take between four to eight months to come to a successful conclusion.
You may first need to register yourself online at the hmrc vat website if you want to use all vat services offered by the department. Even though 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 can be processed further. Hmrc will forward your application to the mentioned country and you might also need to send additional documents like your vat certificate along with the original vat invoice, if desired by that country. If all of 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 can be converted into sterling pounds whenever you transfer it to your UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in 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 should go for vat refunds as 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 should explore all legal means to recover any tax which has already been paid on goods or services utilized by your organization. You don’t need to invest your own time or staff while making vat claims since a competent vat agent is capable of doing the same for you and only collect fees whenever your refund claim is approved.