Make sure to file for vat claims to reclaim vat back

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

As a business you can claim vat back only on services and goods related to your business and 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. You can www.vatvalidation.com/vat reclaim vat charged irrespective of the rates, whether it is the standard, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods apart from certain exceptions.

Since the procedure for filing for vat refunds is fairly complex and time-consuming, particularly for goods or services imported from other eu countries, you should use the assistance of a professional vat agent that’s totally familiar with the most up-to-date uk vat and eu vat rules. Several agents will charge a fee based on the percentage of the vat reclaim amount once it has been approved and will not charge any fees in the event the claim doesn’t materialize. This facility should be accepted by you to avoid paying money from your pocket to the agent since vat claims usually take between four to eight months to get to an effective conclusion.

You will first need to register yourself online with the hmrc vat website if you want to make use of 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 might also have to send additional documents like your vat certificate together with the original vat invoice, if desired by that country. If all 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 may be converted into sterling pounds when you transfer it to the UK banking account.

Reclaiming vat provides relief to your business by lowering costs and injecting vital funds in your business. If you regularly participate in trade shows 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 since this move will lower the price of your goods while enabling 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 ways to recover any tax that has already been paid on services or goods utilized by your business. You need not invest your own time or staff while making vat claims since a competent vat agent is capable of doing the same on your behalf and just collect fees whenever your refund claim is eligible.