VAT, a consumption tax placed on a product whenever value is added at each stage of the supply chain, can significantly impact your business's cash flow. Knowing how to claim VAT back is not just a regulatory necessity; it's a financial strategy that can enhance your business's fiscal health.
Luckily for VAT-registered small businesses like yours, it’s possible to reclaim VAT on all goods and services your business pays for.
This means you can get the same goods and services for 20% less.
To do so, you must first buy these goods and services as normal and then claim back the VAT when submitting your VAT returns to HM Revenue & Customs (HMRC). Doing so is far from straightforward though, with various exceptions to which type of items you can claim for, as well as different rules regarding the amount of VAT you can claim back.
Adsum is here to help, with this guide to claiming back VAT clearing up any confusion around the topic. We can also help you avoid any delays to VAT refunds with our Instant VAT Refunds service, seeing as this can take almost a month ordinarily.