Being a vat registered trader in the UK like 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 services or goods where vat has already been charged, even in another eu country, you can certainly claim that vat amount to give a boost to your business cash-flow.
As being a business you can claim vat back only on services and goods linked to your business 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 www.vatvalidation.com/vat reclaim vat charged irrespective of the rates, be it the regular, reduced or zero rate. However, you will usually not be able 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, particularly for goods or services imported from other eu countries, you should utilize the assistance of a professional vat agent that's totally acquainted with the latest uk vat and eu vat rules. Several agents will charge a fee based on the amount of the vat reclaim amount after it has been approved and will not charge any fees in the event the claim does not materialize. This facility ought to be accepted by you to not pay any money out of your pocket to the 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 at the hmrc vat website if you wish to make use of 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 still need 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 the application to the mentioned country and you might also need to send additional documents like your vat certificate along 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 may be changed into sterling pounds whenever you transfer it to your UK bank account.
Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds in your business. If 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 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.
When you do turn into a vat registered trader in the United Kingdom then you definitely should explore all legal ways to recover any tax which has already been paid on services or goods utilized by your business. You need not invest your own time or staff while making vat claims since a competent vat agent is capable of doing the same on your behalf and just collect fees when your refund claim is eligible.