As a vat registered trader in the UK like a number of other eu countries which have adopted VAT or value added tax, you should make sure to file for 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 can certainly claim that vat amount back to provide a boost to the business cash-flow.
As a business you can claim vat back only on services and goods linked to your organization but not with regards to your use. This vat is referred to as http://vatcontrol.com/vat 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 regardless of the rates, be it the standard, reduced or zero rate. However, you can expect to be unable to claim vat on vat exempt goods apart from 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 utilize the assistance of an expert vat agent that is totally acquainted with the latest uk vat and eu vat rules. Several agents will charge a fee based on the percentage of the vat reclaim amount once 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 avoid paying money out of your pocket to your agent since vat claims usually take between four to eight months to come to an effective conclusion.
You will first have to register yourself online with the hmrc vat website if you wish to make use of all vat services provided 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 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 your application to the mentioned country and you also might also need to send additional documents such as your vat certificate together 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 converted into sterling pounds whenever you transfer it to your UK banking account.
Reclaiming vat can provide 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 into the UK where vat has already been paid then you should go for vat refunds since this move will lower the price 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 means to recover any tax which has already been paid on goods or services used by your organization. You need not 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.