Being a vat registered trader in the UK like many other eu countries that have adopted VAT or value added tax, you should make sure to file 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 are able to certainly claim that vat amount back to give a boost to your business cash-flow.
As a business you can claim vat back only on services and goods related to your organization but not for your personal use www.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. It is possible to reclaim vat charged regardless of the rates, be it the standard, reduced or zero rate. However, you will usually be unable 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 services or goods imported from other eu countries, you should utilize the services of a professional vat agent that is totally familiar with the latest uk vat and eu vat rules get the facts. Several agents will charge a fee based on a amount of the vat reclaim amount after 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 out of your pocket to the agent since vat claims usually take between four to 8 months to get to a successful conclusion.
You will first have to register yourself online with the hmrc vat website if you wish to use all vat services provided by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you 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 can be processed further. Hmrc will forward your application to the mentioned country and you might also need to send additional documents like 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 at 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 when 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 participate in industry events in member eu countries and pay vat in those countries, or import goods to the UK where vat was already paid then you should go for vat refunds since 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 should explore all legal means to recover any tax which has already been paid on services or goods used by your organization. You need not invest your personal 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 approved.