As a vat registered trader in the UK like many other eu countries that have adopted VAT or value added tax, you should make sure to file for vat claims to reclaim vat back. In case you have purchased services or goods where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount to provide a boost to the business cash-flow.
As being a business you can claim vat back only on goods and services related to your business but not with regards to your use. This vat is referred to as vatcontrol.com/vat input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. You can reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you will usually be unable 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, particularly for goods or services imported from other eu countries, you should utilize the services of a professional vat agent that is totally acquainted with the latest uk vat and eu vat rules. Several agents will charge 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 any money from your pocket to the agent since vat claims usually take between four to 8 months to get to an effective conclusion.
You may first need to register yourself online at the hmrc vat website if you want to make use of all vat services provided by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you will still have to make an application 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 also may additionally have 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 converted into sterling pounds when you transfer it to your UK bank account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds in your business. In the event you regularly take part in trade shows in member eu countries and pay vat in those countries, or import goods to the UK where vat has already been paid then you should go 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 United Kingdom then you should explore all legal ways to recover any tax which has already been paid on services or goods utilized by your organization. You don’t need to invest your own time or staff while making vat claims since a capable vat agent can do the same on your behalf and only collect fees whenever your refund claim is eligible.