When you have already paid vat on the goods or services 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 to get back vat that might already have been paid earlier in order to reduce your costs and even get relief from the issue of double taxation over your goods or services.
Although you won’t be permitted to deduct the VAT amount of taxes straight from the next vat return, you will still be allowed to claim that amount in the separate vat refund scheme. This scheme is available in the UK subject to certain conditions. Most eu countries that follow vat will often have such procedures where vat amounts which have already been paid can be reclaimed. If you’re a vat registered trader in the United Kingdom that doesn’t have vat registration in the country of origin you’ll be able to claim any vat paid in that country provided you meet a few other vat rules.
You may also claim vat paid in another eu country if you haven’t got relief through some other vat scheme. You will need 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 UK. However, since reclaiming rules might differ in other countries, 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 a letter or authority to accomplish this.
You can go for a vat reclaim no after 9 months within a year or so after you have paid the vat amount. You may first need to register your organization name and your agent?s name too in case you intend on reclaiming vat using 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. Once you submit the required online vat form you will be issued an online reference number that may indicate that your request is received by the vat refund department.
Although you will not need to send any paper documents, certain eu countries might request a scanned vat invoice to be attached to your vat refund request. Once you have sent your reclaiming request hmrc will send a confirmation regarding the same within 15 days even though 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 information is required from that eu country then you can expect your vat reclaim to be settled after around 8 months of your original application.
To prevent the situation of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that can 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 when you use the vat refund scheme.