Being a vat registered trader in Britain like a number of other eu countries which have adopted VAT or value added tax, you should make sure to file for for vat claims to reclaim vat back. In case you have purchased goods or services where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount back to give a boost to your business cash-flow.
As being a business you can claim vat back only on goods and services linked to your organization and not with regards to your use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department vat numbers that handles customs, excise and vat departments in Britain. It is possible to reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you will usually not be able 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 goods or services imported from other eu countries, you should utilize the services of a professional vat agent that’s totally familiar with the latest uk vat and eu vat rules. Several agents charge you a fee based on the percentage of the vat reclaim amount once it has been approved and will not charge any fees in the event the claim does not materialize. This facility ought to be accepted by you to avoid paying money out of your pocket to your agent since vat claims usually take between four to eight months to get to a successful conclusion.
You will first need to register yourself online with the hmrc vat website if you want to make use of all vat services provided by the department. Even if you want 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 can be processed further. Hmrc will forward your application to the mentioned country and you might also have to send additional documents such as 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 can be converted into sterling pounds when you transfer it to the UK bank account.
Reclaiming vat provides 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 was already paid then you should opt for vat refunds since 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 United Kingdom then you should explore all legal means to recover any tax that has already been paid on goods or services utilized by your business. You don’t need to invest your own time or staff while making vat claims since a capable vat agent can do the same for you and only collect fees whenever your refund claim is approved.