Being a vat registered trader in the UK 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. In case you have purchased services or goods where vat www.vatcheck.com/vat has already been charged, even in another eu country, you can certainly claim that vat amount back to give a boost to your business cash-flow.
As a business you can claim vat back only on services and goods linked to your organization and not for your personal 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 standard, reduced or zero rate. However, you will usually be unable to claim vat on vat exempt goods as well as 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 use the services of a professional vat agent that is totally familiar with the most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on a percentage of the vat reclaim amount after it has been approved and won’t charge any fees if the claim doesn’t materialize. This facility ought to 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 need to register yourself online with the hmrc vat website if you wish to use 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 need to apply 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 might also need 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 in 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 whenever you transfer it to the UK banking account.
Reclaiming vat can provide relief for your business by lowering costs and injecting vital funds into your business. If you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods into the UK where vat has already been paid then you certainly 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 United Kingdom 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 need not invest your personal time or staff while making vat claims since a capable vat agent is capable of doing the same for you and only collect fees whenever your refund claim is approved.