As a vat registered trader in the UK like a number of other eu countries that have adopted VAT or value added tax, you should make sure www.vatregistrationnumber.com to file for for vat claims to reclaim vat back. In case you have purchased goods or services where vat has already been charged, even in another eu country, you are able to certainly claim that vat amount to give a boost to the business cash-flow.
As a business you can claim vat back only on goods and services related to your business but not for your personal 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 irrespective 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.
Considering that the process of filing for vat refunds is quite complex and time-consuming, especially for goods or services imported from other eu countries, you should use the assistance 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 the amount of the vat reclaim amount once it has been approved and will not charge any fees if the claim does not materialize. This facility ought to be accepted by you to avoid paying any money out of your pocket to your agent since vat claims usually take between four to 8 months to get to a successful conclusion.
You will first need to register yourself online with the hmrc vat website if you wish to make use of all vat services offered by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you 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 may additionally have to send additional documents such as 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 changed into sterling pounds whenever you transfer it to your UK banking account.
Reclaiming vat provides relief to your business by lowering costs and injecting vital funds in your business. If 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 was already paid then you should opt 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.
When you do turn into a vat registered trader in the United Kingdom then you definitely should explore all legal means to recover any tax that has already been paid on services or goods utilized by your organization. You don’t need to invest full article your own time or staff while making vat claims since a capable vat agent is capable of doing the same on your behalf and just collect fees whenever your refund claim is approved.