As a vat registered trader in the UK as in many other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. In case you have purchased services or goods where vat was already 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 services and goods linked to your business 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. You can reclaim vat charged vat verification irrespective of the rates, whether it is 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 procedure for filing for vat refunds is fairly complex and time consuming, especially for goods or services imported from other eu countries, you should use the services of an expert vat agent that’s totally familiar with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on a percentage of the vat reclaim amount after it has been approved and won’t charge any fees if ever the claim doesn’t materialize. This facility ought to be accepted by you to not pay any money from your pocket to your 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 wish to file a vat claim for vat paid in a foreign eu country, you will 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 may be processed further. Hmrc will forward the 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 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 changed into sterling pounds when you transfer it to the UK bank account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds in your business. In the event you regularly take part 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 as this move will lower the cost 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 previously been paid on goods or services used by your organization. You don’t need to invest your personal time or staff while making vat claims since a capable vat agent can do precisely the same for you and just collect fees when your refund claim is eligible.