As a vat registered trader in the UK as in many other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. If you have purchased goods or services 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 linked to your organization but not for your personal use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department www.vatnumbers.com that handles customs, excise and vat departments in the UK. It is possible to reclaim vat charged regardless of the rates, be it the standard, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods apart from certain exceptions.
Considering that the procedure for filing for vat refunds is fairly complex and time consuming, especially for goods or services imported from other eu countries, you should use the assistance of an expert vat agent that is totally acquainted 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 if ever the claim doesn’t materialize. This facility should be accepted by you to not pay any money from your pocket to the agent since vat claims usually take between four to eight months to come to an effective 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 will still need to make an application 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 the application to the mentioned country and you may additionally need 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 can be changed into sterling pounds whenever you transfer it to the UK banking account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds in your business. In the event you regularly take part in industry events 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 cost of your goods while enabling 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 which has previously been paid on goods or services used by your organization. You need not invest your personal time or staff while making vat claims since a competent vat agent is capable of doing precisely the same on your behalf and only collect fees whenever your refund claim is approved.