If you have already paid vat on the goods or services more than once and would like to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme for getting back vat which may already have been paid earlier so as to lower your costs and even get relief from the issue of double taxation over your services or goods.
Although you will not be allowed to deduct the VAT tax amount directly from your next vat return, you still be permitted to claim that amount in a separate vat refund scheme. This scheme is available in the UK governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have previously been paid can be reclaimed. If you’re a vat registered trader in the UK that doesn’t have vat registration in the nation of origin then you can claim any vat paid in the country provided you meet a few other vat rules.
You can also claim vat paid in another eu country if you haven’t got relief through some 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 United Kingdom. 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 ensure that you extract vat refunds from the relevant country. Your agent can act on your behalf as soon as you let them have a power of attorney or even a letter or authority to do so.
It is possible to go for a vat reclaim no after 9 months in a calendar year after you have paid the vat amount. You may first need to register your organization name and also your agent?s name too in case you intend on reclaiming vat through 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 save on time and effort. Once you submit the necessary online vat form you’ll be issued an online reference number that may indicate that your request is 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 with your vat refund request. Once you have sent your reclaiming request hmrc will send a confirmation about the same within 15 days even though the concerned eu country will usually offer you a vat refund within 4 months, if all your documents are in proper order. In the event further details are required from that eu country then you can 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 which have adopted vat including the UK offer vat refunds that may be claimed by following proper procedures and ultizing proper applications. You also can reclaim vat paid in any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.