When you have already paid vat on the services or goods more than once and would like to get 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 already have been paid earlier so as to reduce your costs and even get relief from the issue of double taxation over your services or goods.
While you will not be allowed to deduct the VAT amount of taxes straight from the next vat return, you still be allowed to claim that amount in a separate vat refund scheme. This scheme is available in the United Kingdom subject to certain terms and 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 are 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 haven’t got relief through any other vat scheme. You will have 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 United Kingdom. On the other hand, since the reclaiming rules might differ in other countries, you’ll need the expertise of an expert vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds in the relevant country. Your agent can act in your stead once you let them have a power of attorney or a letter or authority to accomplish this.
It is possible to go for a vat reclaim no later than 9 months within a calendar year after you’ve paid the vat amount. You will first need to register your business name and your agent?s name too in case you plan on reclaiming vat using your agent. You should use the hm vat refunds service that’s a part of the vat online services provided by the hmrc vat website in order to reduce time and effort. Once you submit the required online vat form you’ll be issued a web based reference number that may indicate that your 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 you 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 your documents are typically in proper order. In case further information is 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.
In order to avoid the situation of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that may be claimed by following proper procedures and ultizing proper applications. You also 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.