Make sure to file for vat claims to reclaim vat back

As a vat registered trader in the UK as in many other eu countries that 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 services or goods where vat vat check has already been charged, even in another eu country, you are able to certainly claim that vat amount back to provide a boost to the business cash-flow.

As a business you can claim vat back only on services and goods linked to your business but not for your personal 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. It is possible to reclaim vat charged regardless 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 apart from certain exceptions.

Considering that the procedure for filing for vat refunds is fairly complex and time-consuming, especially for goods or services imported from other eu countries, you should utilize the services of a professional vat agent that is totally acquainted with the latest uk vat and eu vat rules. Several agents will charge a fee based on the amount of the vat reclaim amount once 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 avoid paying any money out of your pocket to your agent since vat claims usually take between four to eight months to get to a successful conclusion.

You may first need to register yourself online with the hmrc vat website if you wish to use all vat services provided by the department. Even though you want to file a vat claim for vat paid in a foreign eu country, you still have 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 also might also have to send additional documents like 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 can be changed into sterling pounds whenever you transfer it to the UK banking account.

Reclaiming vat can provide relief to 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 into the UK where vat was already paid then you certainly should opt for vat refunds since this move will lower the price 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 United Kingdom then you should explore all legal means to recover any tax which has already been paid on goods or services used by your organization. You need not invest your own time or staff while making vat claims since a competent vat agent can do precisely the same on your behalf and only collect fees whenever your refund claim is approved.