Claiming vat back can enhance your business income

If you are a vat registered trader in the UK you would then need to pay vat on most goods and services but are you aware that claiming vat back can enhance your business income? If you have already paid vat once on any goods or services necessary for your company or paid vat on it in another eu country then you can certainly make an application for a vat refund.

Most eu countries now utilize the system of vat or value added tax on movement of products and services as a means of collecting more revenue and plugging tax leaks. The UK too has shifted to vat and if you run a company in Britain then you’ll need to make an application for vat registration once your last Twelve month sales turnover touches ?70,000. Being a vat registered trader you will have to pay and collect vat on all purchases and sales related to your company depending on the classification of those products or services according to the HM Revenue and Customs or hmrc vat department.

However, to prevent double taxation on such services and goods, the hmrc department has established vat rules that will permit you to claim vat back on any services or goods purchased for the business. This amount can be recovered even if you have paid that vat in another eu country that http://vatnumbersearch.com follows vat, provided you can show documentary proof which includes the vat invoice or vat receipt. If you have imported goods into the UK after paying vat in the country of origin or have attended a trade fair in a foreign eu country where vat is charged to you then these can be claimed back after you fill the required vat reclaim form.

You should hire an excellent vat agent with complete understanding of uk vat and eu vat rules so that your vat refund claim is passed within the shortest time possible. You’ll have a time frame of 9 months following the end of the year or so once you had first paid your vat on those goods or services. You may use several online vat services provided by hmrc vat including filing online claims for vat refunds. You will need to register on the hmrc website before you can fill up the mandatory online vat form for vat reclaim. The form will then be forwarded to the member eu country in which you may have paid vat initially, along with scans of vat invoices which you may need to attach to the application.

As soon as you get a confirmation usually within 15 days of receipt of your refund claim, it will require around 4 months for your claim to be approved from that member country before you can get your vat back. In the event any additional clarification or documents are required then you should expect a delay of 4 more months and hence it is essential to have it right the first time itself. Your vat refund may be deposited in a banking account that you specify within or outside Britain. However, this amount will be in the currency of the nation of origin and will need to be converted into sterling pounds before it can be transferred to your UK bank account.

Although the process to reclaim vat back is a bit tedious, a competent vat agent can apply for vat refunds on your behalf and notify you on the status of the applications. The reality is that claiming vat back can indeed enhance your business income by pumping back that double-taxed amount back into your business.