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Claiming vat back can enhance your business income


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If you are a vat registered trader in the UK you would then need to pay vat on many 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 goods or services required for your business or paid vat on it 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 the UK then you’ll need to apply for vat registration when your last 12 month sales turnover touches ?70,000. Being a vat registered trader you will need to pay and collect vat on all purchases and sales related to your business according to the classification of these products or services as per the HM Revenue and Customs or hmrc vat department.

However, in order to avoid double taxation on such goods and services, the hmrc department has produced vat rules that will permit you to definitely claim vat back on any goods or services purchased for the business. This amount can be recovered even if you have paid that vat in another eu country that www.vatnumbersearch.com follows vat, provided you can show documentary proof which includes the vat invoice or vat receipt. In case you have imported goods to the UK after paying vat in the nation of origin or have attended a trade fair inside a foreign eu country where vat is charged to you then these can be claimed back after you fill up the required vat reclaim form.

You should hire an excellent vat agent with complete knowledge of uk vat and eu vat rules so your vat refund claim is passed within the shortest time possible. You will have a time frame of 9 months following the end of the calendar year after you had first paid your vat on those goods or services. You may use several online vat services offered by hmrc vat including filing online claims for vat refunds. You will have to register at the hmrc website before you can fill the mandatory online vat form for vat reclaim. The form will then be sent to the member eu country in which you might have paid vat initially, along with scans of vat invoices that you might have to attach to your application.

As soon as you receive a confirmation usually within 15 days of receipt of your refund claim, it will take around 4 months for the claim to be approved from that member country before you can get your vat back. In case any other clarification or documents are required then you definitely should expect a delay of 4 more months and hence it is essential to get it right the very first time itself. Your vat refund may be deposited in a banking account that you specify within or outside Britain. However, this amount will be in the currency of the country of origin and will have to be changed into sterling pounds before it can be transferred to your UK bank account.

Although the process to reclaim vat back is a bit tedious, a competent vat agent can apply for vat refunds as your representative and inform you on the status of your applications. The reality is that claiming vat back can certainly improve your business income by pumping back that double-taxed amount directly into your business.