When you have already paid vat on the services or goods again and want 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 reduce your costs and even get relief from the issue of double taxation over your goods or services.
Although you won’t be allowed to deduct the VAT tax amount directly from the next vat return, you will still be permitted to claim that amount in a separate vat refund scheme. This scheme is available in the United Kingdom governed by certain terms and conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have already 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 the country provided you meet some 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 need 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 United Kingdom. On the other hand, since the reclaiming rules might differ abroad, you’ll need the expertise of a specialist vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds from the relevant country. Your agent can act in your stead once 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 after 9 months within a calendar year after you’ve paid the vat amount. You will first have to register your organization name and also your agent?s name too in case you intend on reclaiming vat through your agent. You should 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 effort. Once you submit the required online vat form you will be issued an online 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 be attached to your vat refund request. Once you’ve sent your reclaiming request hmrc will send a confirmation about the same within 15 days while the concerned eu country will usually offer you a vat refund within 4 months, if all of your documents are in proper order. In the event any further details are required from that eu country then you can 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 can 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 by using the vat refund scheme.