If you have already paid VAT in a foreign eu country and have to pay for the same again throughout your home country then you can reclaim vat to reduce the burden of double taxation. The whole process could be completed online, particularly if your vat registered business is situated in the United Kingdom in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat an easy process.
If you have purchased goods from another vat enabled country within the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you do not have a vat registered business and have already paid vat in the country of origin then you can certainly and should claim that vat back. This will vatcontrol.com/vat not only reduce your product cost but also enable vital funds to flow back to your organization. Even though the vat reclaiming process typically takes between four to 8 months to finish, you can simply appoint a vat agent that is a specialist in eu vat and uk vat refund rules. This should help you to focus on your business while your agent tries to reclaim vat as your representative by utilizing the online vat refund scheme.
Before you can post the first claim for vat, you will need to be a vat registered trader in the UK and will also need to register for vat refund with the hmrc. You will have a maximum of 9 months after the end of a calendar year to make your vat refund application. Since you can easily complete the web based vat form to reclaim any previously paid vat, you won’t need to complete and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist on taking a look at original invoices which you may need to dispatch in order to get an effective refund. Again, your vat agent can help you to complete all necessary formalities.
Many eu countries have their own version of a vat invoice and have different vat rates for various products or services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some kind of vat refunds to avoid the problem of double taxation on products or services. You simply can’t deduct the vat refund amount in your routine vat returns but will instead have to use the vat refund scheme for the very same. In case you have made a vat reclaim in a eu country then you will usually receive the refund amount in their currency. You may either transfer the refund amount to a merchant account in the country or directly arrange for the money to generally be received in your UK banking account by giving them the required details as well as your banking account number.
If you constantly have to import goods or services to the UK where vat was already paid then you should sign up for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat then you can accurately price your products and services while getting a much needed financial injection in your business.