If you have already paid vat on the services or goods again and would like to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme for getting back vat that might have already been paid earlier in order to reduce your costs as well as get respite from the issue of double taxation over your services or goods.
Although you will not be permitted to deduct the VAT amount of taxes 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 UK governed by certain conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have already been paid may be reclaimed. If you’re a vat registered trader in the UK 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 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 UK. However, since reclaiming rules might differ abroad, 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 in your stead as soon as you provide them with a power of attorney or a letter or authority to do so.
It is possible to go in 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 business name and your agent?s name too in case 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 offered by the hmrc vat website so as to save on time and effort. As soon as you submit the necessary online vat form you will be issued an online 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 ask for a scanned vat invoice to be attached with 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 offer you a vat refund within 4 months, if all your documents are typically in proper order. In case further information is 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 that have adopted vat such as the UK offer vat refunds that can be claimed by following proper procedures and using proper applications. You also can reclaim vat paid in any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.