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Claiming vat back can enhance your business income


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If you’re a vat registered trader in Britain then you would have to pay vat on many services and goods but are you aware that claiming vat back can enhance your business income? If you have already paid vat once on any services or goods required for your company or paid vat on it even in another eu country then you can certainly make an application for a vat refund.

Most eu countries now utilize the system of vat or value added tax on movement of products and services as a means of collecting more revenue and plugging tax leaks. The UK too has moved to vat and if you run a company in Britain then you’ll need to make an application for vat registration when your last Twelve month sales turnover touches ?70,000 checkvatnumber.com. As a vat registered trader you will need to pay and collect vat on all purchases and sales in connection with your company depending on the classification of those goods and services according to the HM Revenue and Customs or hmrc vat department.

However, to prevent double taxation on such goods and services, the hmrc department has produced vat rules that will permit you to claim vat back on any goods or services purchased for the business. This amount may be recovered even though you have paid that vat in another eu country that follows vat, provided you can show documentary proof that includes the vat invoice or vat receipt check my blog. 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 for you then it may be claimed back as soon as you fill up the necessary vat reclaim form.

You should hire a proficient vat agent with complete knowledge 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 following the end of the year or so once you had first paid your vat on those goods or services. You can use several online vat services provided 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 may have paid vat initially, together with scans of vat invoices that you might need to attach to your application.

Once you get a confirmation usually within 15 days of receipt of your refund claim, it will take around 4 months for your claim to be approved from that member country before you can get your vat back. In the event any other clarification or documents are required then you should expect a delay of 4 more months and therefore it is essential to get it right the very first time itself. Your vat refund may be deposited in any banking account which you specify within or outside the UK. However, this amount will be in the currency of the country of origin and will need to be converted into sterling pounds before it can be transferred into 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 on the status of the applications. The fact is that claiming vat back can indeed improve your business income by pumping back that double-taxed amount back into your business.