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 to get back vat that might have already been paid earlier in order to lower your costs as well as get respite from the issue of double taxation over your services or goods.
While you won’t be allowed to deduct the VAT tax amount directly from your next vat return, you will still be permitted 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 usually have such procedures where vat amounts which have already been paid may be reclaimed. If you’re a vat registered trader in the United Kingdom that does not have vat registration in the nation of origin then you can claim any vat paid in the 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 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. On the other hand, since reclaiming rules might differ in other countries, you might 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 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 in a year or so after you’ve paid the vat amount. You will first need to register your business 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 provided by the hmrc vat website so as to reduce time and effort. As soon as you submit the required online vat form you will be issued a web based 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 generally be attached to your vat refund request. Once you have sent your reclaiming request hmrc will be sending a confirmation regarding the same within 15 days even though the concerned eu country will usually offer you a vat refund within 4 months, if all your documents are in proper order. In the event 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 situation of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You too can reclaim 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.