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Claiming vat back can enhance your business income


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If you’re a vat registered trader in Britain you would then have to pay vat on many services and goods but did you know that claiming vat back can enhance your business cash flow? In case you have already paid vat once on any goods or services necessary for your company or paid vat on it even in another eu country then you can certainly make an application for a vat refund.

Most eu countries have adopted the system of vat or value added tax on movement of goods and services vatvalidation.com/vat as a way of collecting more revenue and plugging tax leaks. Great Britain too has moved to vat and when you run a business in Britain then you will have to apply for vat registration once your last Twelve month sales turnover touches ?70,000. As a vat registered trader you will have to pay and collect vat on all purchases and sales in connection with your company according to the classification of those products or services according to the HM Revenue and Customs or hmrc vat department.

However, in order to avoid double taxation on such goods and services, the hmrc department has established vat rules that will allow you to claim vat back on any goods or services purchased for your business. This amount can be recovered even if you have paid that vat in another eu country that follows vat, provided you can show documentary proof which includes the vat invoice or vat receipt. If you have imported goods to the UK after paying vat in the nation of origin or have attended a trade fair inside a foreign eu country where vat is charged for you then these can be claimed back as soon as you fill the required vat reclaim form.

You need to hire a proficient vat agent with complete understanding of uk vat and eu vat rules so your vat refund claim is passed within the shortest time possible. You will have a time frame of 9 months after the end of the year or so after you had first paid your vat on those goods or services. You can use several online vat services offered by hmrc vat including filing online claims for vat refunds. You will need to register on the hmrc website before you can fill the mandatory online vat form for vat reclaim. The form is then sent to the member eu country in which you might have paid vat initially, along with scans of vat invoices which you may have to attach to the application.

Once you receive a confirmation usually within 15 days of receipt of the refund claim, it will require around 4 months for the claim to be approved from that member country before you can get your vat back. In case any additional clarification or documents are needed then you definitely should expect a delay of four more months and therefore it is vital to get it right the first time itself. Your vat refund can be deposited in any bank account which you specify within or outside Britain. However, this amount will be in the currency of the nation of origin and will need to be changed into sterling pounds prior to it being transferred to your UK banking account.

Even though the process to reclaim vat back is a little tedious, an efficient vat agent can apply for vat refunds as your representative and inform you on the status of the applications. The fact is that claiming vat back can certainly enhance your business cash flow by pumping back that double-taxed amount back into your business.