As a vat registered trader in the UK like many other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. If you have purchased services or goods where vat has already been charged, even in another eu country, you can certainly claim that vat amount to provide a boost to your business cash-flow.
As a business you are able to claim vat back only on goods and services related to your organization and not with regards to your use http://vatvalidation.com/vat. This vat is referred to 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 irrespective of the rates, whether it is the standard, reduced or zero rate. However, you can expect to not be able to claim vat on vat exempt goods apart from certain exceptions.
Considering that the procedure for filing for vat refunds is quite complex and time-consuming, especially for services or goods imported from other eu countries, you should utilize the assistance of a professional vat agent that is totally acquainted with the most up-to-date uk vat and eu vat rules more helpful hints. 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 if the claim does not materialize. This facility should be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between four to 8 months to get to an effective conclusion.
You may first have to register yourself online with the hmrc vat website if you wish to make use of all vat services offered by the department. Even though you wish 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 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 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 changed into sterling pounds when you transfer it to the UK banking account.
Reclaiming vat provides relief for your business by lowering costs and injecting vital funds into your business. In the event 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 go for vat refunds since this move will lower the cost 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 UK then you definitely should explore all legal means to recover any tax that has previously been paid on services or goods utilized 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 the same on your behalf and just collect fees whenever your refund claim is eligible.