Claiming vat back can improve your business income

If you are a vat registered trader in the UK you would then have to pay vat on most services and goods but did you know that claiming vat back can improve your business income? In case you have already paid vat once on any services or goods required for your business 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 as a means of collecting more revenue and plugging tax leaks. Great Britain too has shifted to vat and if you operate a business in Britain then you will need to make an application for vat registration when your last Twelve month sales turnover touches ?70,000. Being a vat registered trader you will have to pay and collect vat on all purchases and sales related to your business depending on the classification of those goods and services as per the HM Revenue and Customs or hmrc vat department.

However, in order to avoid double taxation on such services and goods, the hmrc department has established vat rules that will allow you to claim vat back on any goods or services purchased for the business http://vatcontrol.com/vat. This amount may be recovered even though you have paid that vat in another eu country that follows vat, provided you are able to show documentary proof that includes the vat invoice or vat receipt. If you have imported goods into the UK after paying vat in the country of origin or have attended a trade fair in a foreign eu country where vat is charged to you then it may be claimed back after you fill the required vat reclaim form.

You should hire an excellent vat agent with complete understanding of uk vat and eu vat rules so your vat refund claim is passed in the shortest time possible. You will have a time limit of 9 months after the end of the calendar year once you had first paid your vat on those goods or services check this. You may use several online vat services offered by hmrc vat including filing online claims for vat refunds. You will have to register on the hmrc website before you can fill up the required online vat form for vat reclaim. The form will then be sent to the member eu country where you might have paid vat initially, together with scans of vat invoices that you might need to affix to your application.

As soon as you get 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 the event any additional clarification or documents are required then you definitely should expect a delay of four more months and therefore it is essential to get it right the very first time itself. Your vat refund can be deposited in a banking account which you specify within or outside the UK. However, this amount will be in the currency of the nation of origin and will have to be converted into sterling pounds prior to it being transferred to your UK banking account.

Although the process to reclaim vat back is a bit tedious, an efficient vat agent can apply for vat refunds on your behalf and inform you about the status of the applications. The reality is that claiming vat back can indeed enhance your business income by pumping back that double-taxed amount back into your company.