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. If you have purchased goods or services where vat was already charged, even in another eu country, you can certainly claim that vat amount back to give a boost to the business cash-flow.
As a business you can claim vat back only on goods and services related to your organization and not with regards to your 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 Britain. You can https://vatvalidation.com/vat reclaim vat charged irrespective of the rates, whether it is the regular, reduced or zero rate. However, you can expect to be unable to claim vat on vat exempt goods as well as certain exceptions.
Since 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 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 once it has been approved and won’t charge any fees if ever the claim does not materialize. This facility ought to be accepted by you to not pay 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 at 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 have to apply for vat reclaim with hmrc first and in addition 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 also might also need 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 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 converted into sterling pounds whenever you transfer it to the UK bank account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds in your business. In the event you regularly participate in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat has already been paid then you certainly should go for vat refunds since 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 UK then you definitely should explore all legal means to recover any tax which has previously 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 for you and just collect fees when your refund claim is eligible.