Make sure to 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 for vat claims to reclaim vat back. In case you have purchased goods or services where vat was already charged, even in another eu country, you can certainly claim that vat amount back to give a boost to the business cash-flow.

As being a business you can claim vat back only on goods and services linked to your business and not with regards to your use. This vat is referred to as input tax by the HM Revenue and Customs or hmrc department vatnumbers that handles customs, excise and vat departments in Britain. You can reclaim vat charged regardless of the rates, whether it is the standard, reduced or zero rate. However, you can expect to be unable to claim vat on vat exempt goods as well as certain exceptions.

Since the process of filing for vat refunds is quite complex and time consuming, particularly for services or goods imported from other eu countries, you should use the assistance of a professional vat agent that’s 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 once it has been approved and won’t charge any fees if ever the claim doesn’t materialize. This facility ought to be accepted by you to avoid paying any money from your pocket to the agent since vat claims usually take between four to 8 months to get to an effective conclusion.

You may first need to register yourself online at the hmrc vat website if you wish to use all vat services provided by the department. Even if you wish to file a vat claim for vat paid in a foreign eu country, you will still have to make an application 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 need 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 when you transfer it to the UK banking account.

Reclaiming vat provides relief for your business by lowering costs and injecting vital funds into your business. If you regularly participate in trade shows in member eu countries and pay vat in those countries, or import goods to 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 UK then you definitely should explore all legal means to recover any tax which has already been paid on services or goods used by your organization. You need not invest your own time or staff while making vat claims since a capable vat agent is capable of doing precisely the same for you and just collect fees whenever your refund claim is approved.