If you operate a trading business in the UK or any other EU country and have imported goods or services which has already paid vat in the nation of origin you’ll be able to claim vat back after vat registration. However, it is important to study many different rules required for vat refund before you decide to stake your claim for any vat reclaim.
Although tourists and certain other individuals can claim VAT or value added tax once they go back in order to their country by simply showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they can qualify for a refund. If you too have imported goods or services vat registration number originating from a member EU country to the UK and also have already paid vat in that country then in order to avoid double taxation and reduce your costs, you should surely have a vat refund. Even though you may not be able to directly deduct the vat amount in your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can use the vat online services offered by HM customs and excise customs vat or go to the hmrc vat web site to register your business first. If you are not internet savvy or have trouble in comprehending vat rules it would be better to appoint a vat agent that delivers all vat services including obtaining refunds and handling vat returns. Now you can authorize your vat agent to submit your vat claims in your stead. You can also appoint different vat agents in different countries and register them separately, particularly if you import services and goods from different countries.
You should make sure that you retain all original documents of vat paid in the original country before you claim vat back. You need to fill up the vat form for vat reclaim before 9 months within the next twelve months once you have paid the original vat amount so that you can qualify for a vat refund. However, this time around period varies in different countries. You might also need to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you attach the faktura vat or tax invoice which is written in Polish language before it’s sent for any reclaim. When this happens, a local vat agent would be in a very better position to comprehend the precise laws for each country.
Once you have submitted all relevant documents to claim vat back, then you should receive the vat refund within the designated time period specified by the specific country. In great britan the time period is generally around 4 months if your own claim is processed and approved without the need for additional proof. You may receive your vat refund in a EU country that you want or perhaps the UK provided you’ve got a valid banking account within the desired country. However, remember that to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of the country.
If your business requires goods or services that have already paid vat in the country of origin before reaching the shores of your country in which you have to pay vat again, you’ll be able to claim back the excess vat paid on them. A vat agent that’s well versed in international and national vat rules will be able to help you towards claiming vat back without difficulty. If you have just started trading internationally you’ll be able to claim vat back after vat registration and reduce your costs to some great extent.