If you have already paid vat on the goods or services more than once and would like to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme for getting back vat which may have already been paid earlier so as to lower your costs as well as get respite from the problem of double taxation over your services or goods.
While you will not be allowed to deduct the VAT amount of taxes directly from your next vat return, you still be permitted to claim 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 that have already been paid can be reclaimed. If you are a vat registered trader in the United Kingdom that doesn’t have vat registration in the nation of origin then you can claim any vat paid in the country provided you meet some other vat rules.
You may 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 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 in other countries, you’ll 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 do so.
It is possible to go for a vat reclaim no later than 9 months within a calendar year after you have paid the vat amount. You will first need to register your business name and your agent?s name too in the event you intend on reclaiming vat using your agent. You should use the hm vat refunds service that is a part of the vat online services provided by the hmrc vat website in order to save on time and effort. Once you submit the necessary online vat form you will be issued a web based reference number that will 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 ask for a scanned vat invoice to generally be attached to your vat refund request. Once you have sent your reclaiming request hmrc will be sending you a confirmation regarding the same within 15 days while the concerned eu country will usually provide you with a vat refund within 4 months, if all your documents are in proper order. In case any further information is required from that eu country then you can expect your vat reclaim to be settled after around 8 months of the original application.
To prevent the situation of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that may be claimed by following proper procedures and ultizing 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 when you use the vat refund scheme.