Make sure to make an application for vat claims to reclaim vat back

Being a vat registered trader in Britain as in a number of other eu countries that have adopted VAT or value added tax, you should ensure 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 are able to certainly claim that vat amount back to give a boost to the business cash-flow.

As a business you can claim vat back only on goods and services linked to your business and 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 Britain. It is possible to reclaim vat charged vatverification irrespective of the rates, whether it is the regular, 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 process of filing for vat refunds is quite complex and time consuming, especially for services or goods 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 will charge a fee based on a percentage of the vat reclaim amount after it has been approved and won’t charge any fees if ever the claim does not materialize. This facility should be accepted by you to avoid paying money from your pocket to the agent since vat claims usually take between four to eight months to get to a successful conclusion.

You will first need to register yourself online at 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 still need 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 also 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 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 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 has already been paid then you certainly 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.

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 which has already been paid on goods or services used by your organization. You don’t need to invest your own time or staff while making vat claims since a capable vat agent can do the same on your behalf and only collect fees when your refund claim is eligible.