Claiming vat back can enhance your business income

If you are a vat registered trader in the UK then you would have to pay vat on many goods and services but are you aware that claiming vat back can enhance your business cash flow? If you have already paid vat once on any services or goods necessary for your company or paid vat on it even in another eu country then you can definitely submit an application for a vat refund.

Most eu countries have adopted 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. 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 checkvatnumber.com. Being a vat registered trader you will have to pay and collect vat on all purchases and sales in connection with your company depending on the classification of these goods and services according to 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 allow you to claim vat back on any goods or services purchased for your business. This amount can be recovered even though you have paid that vat in another eu country that follows vat, provided you can show documentary proof which includes the vat invoice or vat receipt continue reading. If you have imported goods into the UK after paying vat in the nation of origin or have attended a trade fair in a foreign eu country where vat has been charged for you then these can be claimed back after you fill up the necessary vat reclaim form.

You should hire an excellent vat agent with complete knowledge of uk vat and eu vat rules so that your vat refund claim is passed within the shortest time possible. You will have a time limit of 9 months following the end of the calendar year once you had first paid your vat on those goods or services. You can 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 fill up the mandatory online vat form for vat reclaim. The form will then be forwarded to the member eu country where you may have paid vat initially, along with scans of vat invoices which you may have to attach to your application.

Once you receive a confirmation usually within 15 days of receipt of your refund claim, it will require around 4 months for the 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 vital to get it right the first time itself. Your vat refund can be deposited in a bank account which you specify within or outside Britain. However, this amount will be in the currency of the country of origin and will need to be converted into sterling pounds prior to it being transferred to your UK bank account.

Even though the process to reclaim vat back is a little tedious, a competent vat agent can apply for vat refunds on your behalf and notify you about the status of your applications. The reality is that claiming vat back can certainly enhance your business income by pumping back that double-taxed amount back into your business.