If you have already paid vat on your 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 to get back vat which may have already been paid earlier in order to lower your costs as well as get respite from the problem of double taxation over your goods or services.
While you won’t be permitted to deduct the VAT tax amount directly from your next vat return, you will still be allowed to state that amount in the separate vat refund scheme. This scheme is available in the United Kingdom governed by certain conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have previously been paid may be reclaimed. If you’re a vat registered trader in the United Kingdom that doesn’t have vat registration in the nation of origin you’ll be able to claim any vat paid in the country provided you meet a few other vat rules.
You may also claim vat paid in another eu country if you have not got relief through any other vat scheme. You will have to use a standard vat reclaiming form from the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the UK. However, since reclaiming rules might differ abroad, you’ll need the services of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act on your behalf 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 in a year or so after you have paid the vat amount. You may first need to register your business name and also your agent?s name too in the event you intend on reclaiming vat through your agent. You should use the hm vat refunds service that is a part of the vat online services offered by the hmrc vat website in order to reduce time and energy. Once you submit the necessary 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.
Although you will not need to send any paper documents, certain eu countries might request a scanned vat invoice to generally be attached to your vat refund request. Once you have sent your reclaiming request hmrc will send a confirmation about the same within 15 days while the concerned eu country will usually offer you a vat refund within 4 months, if all your documents are typically in proper order. In case any further details are 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.
To prevent the situation of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that may be claimed by following proper procedures and ultizing proper applications. You too can reclaim vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.