Ensure that you file for vat claims to reclaim vat back

Being a vat registered trader in the UK as in a number of other eu countries which have adopted VAT or value added tax, you should ensure to file for vat claims to reclaim vat back. In case you have purchased goods or services where vat vat check was already charged, even in another eu country, you can certainly claim that vat amount to give a boost to the business cash-flow.

As a business you are able to claim vat back only on goods and services linked to your organization and 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 Britain. You can reclaim vat charged regardless of the rates, be it the regular, 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, especially for goods or services imported from other eu countries, you should use the services of an expert vat agent that’s totally acquainted with the latest uk vat and eu vat rules. Several agents will charge a fee based on the percentage of the vat reclaim amount after it has been approved and will not charge any fees in the event the claim does not materialize. This facility should be accepted by you to not pay money out of your pocket to the agent since vat claims usually take between four to 8 months to get to a successful conclusion.

You may first have to register yourself online with the hmrc vat website if you want to use all vat services offered by the department. Even if 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 in addition 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 might also need 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 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 bank account.

Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds in your business. If 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 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.

Once you do turn into a vat registered trader in the United Kingdom then you should explore all legal means to recover any tax that has previously 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 precisely the same for you and only collect fees whenever your refund claim is approved.