When 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 so as to reduce your costs and even get relief from the issue of double taxation over your services or goods.
Although you won’t be allowed to deduct the VAT amount of taxes directly from your next vat return, you still be allowed to claim that amount in a separate vat refund scheme. This scheme is available in the United Kingdom subject to certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts that 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 country of origin then you can 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 have to use 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 the 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 from the relevant country. Your agent can act in your stead as soon as you let them have a power of attorney or a letter or authority to do so.
You can go in for a vat reclaim no later than 9 months in a calendar year after you have paid the vat amount. You will first need to register your organization 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’s a part of the vat online services offered by the hmrc vat website so as to reduce time and energy. Once you submit the necessary online vat form you’ll be issued an online reference number that may indicate that the request has been 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 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 typically in proper order. In the event 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 problem of double taxation, most eu countries that have adopted vat such as the UK offer vat refunds that may be claimed by using 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.