As a vat registered trader in Britain as in a number of 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 goods or services where vat has already been charged, even in another eu country, you can certainly claim that vat amount back to provide a boost to your business cash-flow.
As being a business you are able to claim vat back only on services and goods linked to your business but not for your personal use vatvalidation.com/vat. 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 reclaim vat charged irrespective of the rates, be it the standard, reduced or zero rate. However, you can expect to not be able 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 use the services of an expert vat agent that’s totally acquainted with the latest uk vat and eu vat rules my link. Several agents will charge a fee based on the amount of the vat reclaim amount after it has been approved and won’t charge any fees in the event the claim does not materialize. This facility ought to be accepted by you to not pay money out of your pocket to your agent since vat claims usually take between four to eight months to get to an effective conclusion.
You will 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 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 the application to the mentioned country and you also may additionally need to send additional documents such as your vat certificate along 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 can be changed into sterling pounds when you transfer it to your UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds into your business. If 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 was already paid then you certainly should go for vat refunds as this move will lower the price of your goods while enabling 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 ways to recover any tax that has previously been paid on services or goods used by your business. You don’t need to invest your own time or staff while making vat claims since a capable vat agent is capable of doing precisely the same for you and just collect fees whenever your refund claim is eligible.