In case you have already paid VAT inside a foreign eu country and have to pay for the same again in your own country then you can reclaim vat to lower the load of double taxation. The entire process could be completed online, particularly if your vat registered organization is situated in the UK where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat an easy process.
In case you have purchased goods from another vat enabled country within the European Union such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you don’t have a vat registered business and have already paid vat in the country of origin then you can certainly and must claim that vat back. This will not only lower product cost but also enable vital funds to flow back to your organization. Although the vat reclaiming process usually takes between four to 8 months to finish, you can easily appoint a vat agent vat numbers that is an expert in eu vat and uk vat refund rules. This will help you to focus on your business while your agent attempts to reclaim vat on your behalf by utilizing the online vat refund scheme.
Before you post the first claim for vat, you will need to be a vat registered trader in the UK and will have to register for vat refund with the hmrc. You will have a maximum of 9 months after the end of the calendar year for making your vat refund application. Since you can simply fill out the web based vat form to reclaim any previously paid vat, you will not have 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 upon taking a look at original invoices which you may have to dispatch to get a successful refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own version of the vat invoice and have different vat rates for a number of goods and services. For example, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some kind of vat refunds to avoid the problem of double taxation on products or services. You cannot deduct the vat refund amount within your routine vat returns but will instead have to use the vat refund scheme for the very same. If you have made a vat reclaim in a eu country then you will usually get the refund amount in their currency. You may either transfer the refund amount to a merchant account in that country or directly arrange for the money to generally be received within your UK bank account by providing them the required details including your banking account number.
If you constantly need to import services or goods into the UK where vat has already been paid you then should sign up for the vat refund scheme offered by the hmrc vat department. Once you successfully reclaim vat you’ll be able to accurately price your items and services while getting a necessary financial injection in your business.