If you have already paid vat on the services or goods again and want to get the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme for getting back vat which may have already been paid earlier in order to reduce your costs and even get respite from the issue of double taxation over your goods or services.
Although you will not be allowed to deduct the VAT tax amount directly from your next vat return, you still be permitted to state that amount in a separate vat refund scheme. This scheme is available in the United Kingdom subject to certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have previously been paid may be reclaimed. If you are a vat registered trader in the UK that does not 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 haven’t got relief through some other vat scheme. You will have to make use of a standard vat reclaiming form through the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the United Kingdom. On the other hand, since the reclaiming rules might differ abroad, you might need the services of an expert vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds in the relevant country. Your agent can act on your behalf once you provide them with a power of attorney or even a letter or authority to accomplish this.
You can go in for a vat reclaim no after 9 months within a year or so after you’ve paid the vat amount. You may first need to register your business name and also your agent?s name too in case 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 provided by the hmrc vat website so as to save on time and effort. Once you submit the required online vat form you will be issued a web based reference number that will indicate that your request has been received by the vat refund department.
Although you will not need to send any paper documents, certain eu countries might ask for a scanned vat invoice to generally be attached to your vat refund request. Once you have sent your reclaiming request hmrc will send 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 the event further information is required from that eu country you’ll be able to expect your vat reclaim to get settled after around 8 months of the original application.
In order to avoid the problem of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that may be claimed by following proper procedures and using proper applications. You too can reclaim vat paid in any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.