Being a vat registered trader in the UK as in many other eu countries that 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 was already 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 can claim vat back only on services and goods linked to your business but not with regards to your use www.vatvalidation.com/vat. This vat is known 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 regardless of the rates, be it the standard, reduced or zero rate. However, you can expect to not be able to claim vat on vat exempt goods apart from certain exceptions.
Considering that the process of filing for vat refunds is fairly complex and time consuming, especially for services or goods imported from other eu countries, you should utilize the services of an expert vat agent that is totally acquainted with the latest uk vat and eu vat rules check this out. 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 if ever the claim does not materialize. This facility should be accepted by you to not pay money from your pocket to your agent since vat claims usually take between four to 8 months to get to a successful conclusion.
You may first have to register yourself online with the hmrc vat website if you want to make use of all vat services offered by the department. Even if you wish to file a vat claim for vat paid in a foreign eu country, you still have to make an application 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 your application to the mentioned country and you also might also have to send additional documents such as your vat certificate along 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 can be changed into sterling pounds when you transfer it to your UK banking account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds into your business. In the event you regularly take part in trade shows 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 go 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.
When you do turn into a vat registered trader in the UK then you definitely should explore all legal means to recover any tax which has previously been paid on services or goods utilized by your business. You don’t need to invest your personal 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 eligible.