If you have already paid vat on your goods or services again and want to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme to get back vat that might already have been paid earlier in order to lower your costs and even get respite from the issue of double taxation over your services or goods.
Although you will not be allowed to deduct the VAT tax amount straight from your next vat return, you will still be allowed to state that amount in a separate vat refund scheme. This scheme is available in the United Kingdom governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have already been paid can 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 some 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 need to make use of a standard vat reclaiming form through the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the United Kingdom. On the other hand, since reclaiming rules might differ in other countries, you might need the services of a specialist 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 once you let them have a power of attorney or even a letter or authority to do so.
You can go for a vat reclaim no later than 9 months within a year or so after you’ve paid the vat amount. You will first have to register your business name and your agent?s name too in the event you intend on reclaiming vat through your agent. You need to use the hm vat refunds service that is a part of the vat online services provided by the hmrc vat website so as to reduce time and effort. Once you submit the necessary online vat form you’ll be issued a web based reference number that will indicate that your request is received by the vat refund department.
While 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’ve sent your reclaiming request hmrc will send a confirmation regarding the same within 15 days even though the concerned eu country will normally provide you with a vat refund within 4 months, if all your documents are in proper order. In the event any further details are required from that eu country then you can expect your vat reclaim to be settled after around 8 months of the original application.
To prevent the problem of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that may be claimed by following proper procedures and using proper applications. You also can claim back 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.