If you have already paid vat on your services or goods more than once and want to get the original amount back then while reclaiming vat ensure proper procedures are followed. You may 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 services or goods.
While you will not be allowed to deduct the VAT amount of taxes straight from the next vat return, you will still be permitted to claim that amount in the separate vat refund scheme. This scheme is available in the UK subject to certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have previously been paid may be reclaimed. If you are a vat registered trader in the United Kingdom that does not have vat registration in the country of origin you’ll be able to claim any vat paid in that country provided you meet a few other vat rules.
You can also claim vat paid in another eu country if you have not got relief through some other vat scheme. You will have to make use of 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 the reclaiming rules might differ in other countries, you’ll need the services of an expert vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds in the relevant country. Your agent can act on your behalf as soon as you provide them with a power of attorney or even a letter or authority to accomplish this.
It is possible to go in for a vat reclaim no later than 9 months within a calendar year after you have paid the vat amount. You may first have to register your organization name and your agent?s name too in the event you plan on reclaiming vat using your agent. You should use the hm vat refunds service that’s a part of the vat online services provided by the hmrc vat website in order to reduce time and effort. As soon as you submit the required online vat form you’ll be issued a web based reference number that may indicate that the request is received by the vat refund department.
Although you will not need to send any paper documents, certain eu countries might ask for a scanned vat invoice to generally be attached to your vat refund request. Once you have sent your reclaiming request hmrc will be sending a confirmation regarding the same within 15 days even though the concerned eu country will usually provide you with a vat refund within 4 months, if all your documents are in proper order. In case any further information is required from that eu country you’ll be able to expect your vat reclaim to be settled after around 8 months of your original application.
To prevent the situation of double taxation, most eu countries that have adopted vat such as the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You too can claim back vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.