Ensure that you make an application for vat claims to reclaim vat back

As a vat registered trader in Britain like a number of other eu countries which have adopted VAT or value added tax, you should make sure 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 services and goods linked to your organization and not for your personal use. This vat is referred to as http://vatcontrol.com/vat input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. You can reclaim vat charged irrespective of the rates, be it the standard, 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 quite complex and time consuming, especially for services or goods imported from other eu countries, you should utilize the assistance of a professional vat agent that’s totally acquainted with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on the amount of the vat reclaim amount after it has been approved and won’t charge any fees in the event the claim does not materialize. This facility should be accepted by you to not pay any money out of your pocket to the agent since vat claims usually take between four to eight months to come to a successful conclusion.

You may first have to register yourself online at 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 need to apply for vat reclaim with hmrc first and also provide all necessary vat documents including vat receipts so that your claim may 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 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 the UK bank account.

Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds into your business. If you regularly take part 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 as this move will lower the cost 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 business. You don’t need to invest 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 when your refund claim is approved.