When you have already paid vat on your goods or services again and would like to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme for getting back vat that might already have been paid earlier so as to lower your costs as well as get respite from the problem of double taxation over your goods or services.
Although you won’t be allowed to deduct the VAT tax amount directly from your next vat return, you still be allowed to state that amount in a separate vat refund scheme. This scheme is available in the UK governed by certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have already been paid may be reclaimed. If you’re a vat registered trader in the UK that doesn’t have vat registration in the nation of origin then you can claim any vat paid in that country provided you meet a few other vat rules.
You can also claim vat paid in another eu country if you have not got relief through some other vat scheme. You will have to use a standard vat reclaiming form from the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the UK. On the other hand, since reclaiming rules might differ abroad, you might need the services of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act on your behalf as soon as you let them have a power of attorney or even a letter or authority to accomplish this.
You can go for a vat reclaim no after 9 months within a calendar year after you’ve paid the vat amount. You may first need to register your business name and your agent?s name too in the event you plan on reclaiming vat through your agent. You need to use the hm vat refunds service that is a part of the vat online services offered by the hmrc vat website so as to reduce time and energy. As soon as you submit the required online vat form you’ll be issued an online reference number that may indicate that the request has been received by the vat refund department.
While you will not need to send any paper documents, certain eu countries might request a scanned vat invoice to be attached with your vat refund request. Once you’ve sent your reclaiming request hmrc will be sending you a confirmation about the same within 15 days while the concerned eu country will usually provide you with a vat refund within 4 months, if all of your documents are typically in proper order. In case further details are required from that eu country you’ll be able to expect your vat reclaim to get settled after around 8 months of your original application.
To prevent the problem of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that may be claimed by using proper procedures and using proper applications. You also can claim back vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.