Ensure that you file for vat claims to reclaim vat back

As a vat registered trader in the UK like a number of other eu countries which 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 are able to claim vat back only on goods and services linked to your business but not with regards to your use. 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. You can http://vatvalidation.com/vat reclaim vat charged irrespective of the rates, be it the regular, reduced or zero rate. However, you will usually not be able 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 use the services of a professional vat agent that is totally familiar with the latest 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 the claim does not 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 eight months to get to a successful conclusion.

You may first have to register yourself online at the hmrc vat website if you want 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 still need to apply 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 the application to the mentioned country and you also may additionally have to send additional documents such as your vat certificate together with the original vat invoice, if desired by that country. If all 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 can be converted into sterling pounds whenever you transfer it to your UK banking account.

Reclaiming vat provides relief for 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 certainly should go for vat refunds as this move will lower the cost of your goods while enabling you to legally claim doubly paid tax back from the government.

Once you do turn into a vat registered trader in the UK then you should explore all legal ways to recover any tax which has already been paid on goods or services used by your business. You don’t need to invest your own time or staff while making vat claims since a competent vat agent is capable of doing precisely the same for you and just collect fees when your refund claim is eligible.