Being a vat registered trader in Britain 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. If you have purchased goods or services where vat was already 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 can claim vat back only on services and goods linked to your organization but 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 the UK. It is possible to reclaim vat charged vatverification 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 as well as certain exceptions.
Considering that the process of 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 most up-to-date uk vat and eu vat rules. Several agents charge you a fee based on a percentage of the vat reclaim amount once it has been approved and won't charge any fees in the event the claim doesn't materialize. This facility should be accepted by you to not pay money out of your pocket to your agent since vat claims usually take between four to 8 months to come to an effective conclusion.
You will first need to register yourself online at the hmrc vat website if you wish to use 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 need to apply 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 may additionally 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 provides relief for your business by lowering costs and injecting vital funds into your business. If you regularly take part in trade shows 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 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 UK then you should explore all legal means to recover any tax that 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 can do precisely the same for you and just collect fees when your refund claim is eligible.