When you have already paid vat on the goods or services again and would like 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 that might have already been paid earlier so as to reduce your costs as well as get respite from the problem of double taxation over your services or goods.
Although you won’t be permitted to deduct the VAT amount of taxes directly from the 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 subject to certain conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have previously been paid may 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 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 any 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. However, since the reclaiming rules might differ abroad, you might need the expertise of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds in 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 accomplish this.
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 business name and your agent?s name too in the event you plan 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. As soon as you submit the necessary online vat form you will be issued a web based reference number that may indicate that the 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 to your vat refund request. Once you have sent your reclaiming request hmrc will send you a confirmation about 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 typically in proper order. In the event further information is 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 can be claimed by following proper procedures and ultizing proper applications. You too can reclaim 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.