You can reclaim vat to reduce the load of double taxation

If you have already paid VAT in 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 procedure can be completed online, especially if your vat registered organization is situated in the United Kingdom where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat easy.

In case you have purchased goods from another vat enabled country in the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not have a vat registered business and still have already paid vat in the country of origin then you can and should claim that vat back. This will not just lower product cost but will also enable vital funds to circulate back to your organization. Although the vat reclaiming process usually takes between four to eight months to complete, 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 using the online vat refund scheme.

Before you post the first claim for vat, you will have to become a vat registered trader in the UK and will need to register for vat refund with the hmrc. You’ll have maximum of 9 months after the end of a calendar year to make your vat refund application. Since you can easily fill out the online vat form to reclaim any previously paid vat, you will not need to fill out 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 looking at original invoices that you might 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 a vat invoice and also have different vat rates for various 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 form of vat refunds to avoid the problem of double taxation on products or services. You simply can’t deduct the vat refund amount within 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 within a eu country then you will usually receive the refund amount in their currency. You can either transfer the refund figure to an account in the country or directly arrange for the money to be received in your UK banking account by providing them the necessary details including your bank account number.

In case you constantly have to import goods or services to the UK where vat has already been paid then you should sign up for the vat refund scheme offered by the hmrc vat department. Once you successfully reclaim vat then you can accurately price your products and services while getting a necessary financial injection in your business.