Claim reverse charge vat on services where vat has already been paid

If you're a vat registered trader in Britain you'll be able to 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 your net cost does not increase.

If you're a trader that utilizes services of foreign companies, especially those situated in vat-friendly eu countries then you certainly may have already paid vat in those countries. On the other hand, you may also have received such services in Britain itself vatcheck.com/vat from the supplier located in a eu country. Every one of these factors would end up boosting your expenses since you might end up paying vat on certain services including those linked 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.

If you have a lttle bit difficulty in interpreting these vat rules then you should enrol the expertise of a competent customs and excise customs vat agent having a wide reach practically 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 may have been paid to a foreign company located in another country including a vat-friendly eu country.

You can reclaim vat already paid for specified services while filing your vat returns itself. If you're in the UK then you will need to calculate and indicate the amount of paid in Box 1 of the vat return form. You'll then have to specify exactly the same amount in Box 4 of the return so that the amount stands cancelled. You'll have to specify the total quantity of the supply in Box 6 and 7 of the vat return form so as 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 in the amounts in those boxes.

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

Although following vat rules are not really hard, it is always preferable to choose services of proficient vat agent that can handle all of your vat requirements seamlessly. This will enable you to concentrate on boosting your business while your vat agent files for reverse charge vat and recovers your taxes which may have previously been taken care of services rendered by a foreign company within or outside the UK.