Being a vat registered trader in the UK like a number of other eu countries which have adopted VAT or value added tax, you should make sure to file 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 provide a boost to the business cash-flow.
As a business you are able to claim vat back only on services and goods related 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 that handles customs, excise and vat departments in Britain. It is possible to www.vatvalidation.com/vat reclaim vat charged regardless of the rates, be it the regular, 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 quite complex and time consuming, particularly for goods or services imported from other eu countries, you should use the services of an expert vat agent that is 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 if the claim does not materialize. This facility ought to be accepted by you to avoid paying money from your pocket to the agent since vat claims usually take between four to eight months to get to a successful conclusion.
You may first have to register yourself online with the hmrc vat website if you wish 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 make an application for vat reclaim with hmrc first and in addition 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 might also have to send additional documents like your vat certificate together with the original vat invoice, if desired by that country. If all of 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 changed into sterling pounds when you transfer it to your UK bank account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds into 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 certainly should opt for vat refunds since this move will lower the price of your goods while enabling 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 should explore all legal means to recover any tax which has already been paid on goods or services utilized by your business. You need not invest your personal time or staff while making vat claims since a competent vat agent is capable of doing the same on your behalf and just collect fees whenever your refund claim is eligible.