Warning: Illegal string offset 'box_blank' in /home/webhotel/public_html/skriol.com/wp-content/plugins/seo-smart-links-business/seo-smart-links-business.php on line 634

Claim reverse charge vat on services where vat was already paid


Warning: Illegal string offset 'box_blank' in /home/webhotel/public_html/skriol.com/wp-content/plugins/seo-smart-links-business/seo-smart-links-business.php on line 634

If you are a vat registered trader in Britain then you can avoid the problem of double taxation on services utilized from foreign companies whenever you claim reverse charge vat on services where vat has already been paid. This vat procedure will allow you to first pay vat and then cancel it so that your net cost doesn’t increase.

If you are a trader which uses services of foreign companies, especially those situated in vat-friendly eu countries then you certainly might have already paid vat in those countries. On the other hand, you might also vatnumbersearch have obtained such services in the UK itself from the supplier located in a eu country. Every one of these factors would turn out boosting your expenses as you might end up paying vat on certain services including those related to land, property, intra EC-freight services, as well as other such services as defined by the HM Revenue and Customs or hmrc department in conjunction with the European Community simplification regulations.

In case you have a lttle bit difficulty in interpreting these vat rules then you should enrol the services of a competent customs and excise customs vat agent having a wide reach in most eu countries that practise vat. This kind of agent would surely understand all uk vat and eu vat regulations and may help you to claim reverse charge vat that might have been paid to a foreign company located in another country together with a vat-friendly eu country.

You can reclaim vat already covered specified services while filing your vat returns itself. If you’re in Britain then you’ll have to calculate and indicate how much paid in Box 1 of your vat return form. You’ll then have to specify exactly the same amount in Box 4 of the return to ensure the amount stands cancelled. You will also need to specify the total quantity of the provision in Box 6 and 7 in the vat return form in order to complete your reverse charge vat claim. However, you will need to convert the currency of any vat paid in the foreign country to sterling before you fill out the amounts in those boxes.

This reverse charge process is also known as tax shift and you can go in for this type of vat reclaim only when you are a vat registered trader in Britain. In order to be a vat registered trader, your taxable sales have to cross over ?70,000 in the last 12 months while you may even apply before vat threshold amount has been achieved. Once you start charging vat to your customers and file regular vat returns then any services rendered by you from a foreign company can be reclaimed back in future vat returns, provided you follow all necessary guidelines from hmrc vat department.

Although following vat rules usually are not really hard, it is usually preferable to opt for the services of a proficient vat agent that can handle all of your vat requirements seamlessly. This will likely allow you to focus on increasing your business while your vat agent files for reverse charge vat and recovers your taxes which may have already been paid for services rendered by a foreign company within and out the UK.