As a vat registered trader in the UK like many other eu countries that have adopted VAT or value added tax, you should ensure to file for for vat claims to reclaim vat back. If 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 goods and services related to your business and not for your personal use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department vatnumbers.com that handles customs, excise and vat departments in the UK. It is possible to 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 as well as certain exceptions.
Since the procedure for filing for vat refunds is quite complex and time consuming, particularly 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 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 doesn't materialize. This facility ought to be accepted by you to avoid paying money from your pocket to the agent since vat claims usually take between four to eight months to get to an effective conclusion.
You will first have to register yourself online with the hmrc vat website if you want to use all vat services offered by the department. Even if 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 the application to the mentioned country and you might also have to send additional documents like your vat certificate along 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 whenever you transfer it to the UK banking account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds into 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 into the UK where vat has already been paid then you should opt for vat refunds as 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 United Kingdom then you definitely should explore all legal means to recover any tax which has already been paid on services or goods used 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 only collect fees when your refund claim is approved.