When you have already paid vat on the services or goods more than once 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 which may have already been paid earlier so as to lower your costs as well as 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 directly from the 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 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’re a vat registered trader in the United Kingdom that does not have vat registration in the country of origin then you can claim any vat paid in that country provided you meet some 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 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. However, since reclaiming rules might differ in other countries, you might need the services 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 a letter or authority to accomplish this.
It is possible to go in 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 organization name and also your agent?s name too in the event you plan 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 in order 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 ask for a scanned vat invoice to generally be attached with your vat refund request. Once you have sent your reclaiming request hmrc will be sending a confirmation about the same within 15 days even though the concerned eu country will normally provide you with a vat refund within 4 months, if all of your documents are typically in proper order. In case any further details are required from that eu country then you can expect your vat reclaim to get settled after around 8 months of your original application.
In order to avoid the problem of double taxation, most eu countries that have adopted vat such as the UK offer vat refunds that may be claimed by using proper procedures and using 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.