If you operate a trading business in the united kingdom or other EU country and also have imported services or goods that has already paid vat in the nation of origin you’ll be able to claim vat back after vat registration. However,
it is important to study many different rules required for vat refund before you decide to stake your claim for a vat reclaim.
Although tourists and certain other people can claim VAT or vat when they return back to their own country by simply showing the initial vat invoice displaying the vat rate and vat amount, businesses have to furnish many more details before they are able to qualify for a refund. If you too have imported goods or services originating from a member EU country into the UK and also have already paid vat in that country then in order to avoid double taxation and reduce your costs, you should surely apply for a vat refund. Although you might not be able to directly deduct the vat amount in your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can utilize the vat online services offered by HM customs and excise customs vat or visit the hmrc vat web site to register your organization first. If you are not internet savvy or have trouble in comprehending vat rules then it would be better to appoint a vat agent that delivers all vat services including obtaining refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims on your behalf. You can also appoint different vat agents in different countries and register them separately, especially if you import goods and services from different countries.
You need to ensure that you retain all original documents of vat paid in the original country before you claim vat back. You should fill up the vat form for vat reclaim before 9 months in the next twelve months once you have paid the original vat amount so that you can be eligible for a a vat refund. However, this time period varies in various countries. You might also need to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you attach the faktura vat or tax invoice which is written in Polish language before it’s sent for a reclaim. In such a case, a local vat agent would be in a stronger position to comprehend the specific laws of each country.
After you have submitted all relevant documents to assert vat back, then you should receive the vat refund within the designated time period specified by the exact country. In great britan the time period is usually around 4 months when your claim is processed and approved without any need for additional proof. You may receive your vat refund in a EU country that you desire or perhaps the UK provided you have a valid banking account in the desired country. However, you should remember to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires services or goods which have already paid vat in the country of origin before reaching the shores of one’s country in which you have to pay vat again, you’ll be able to claim back the excess vat paid on them. A vat agent that’s amply trained in international and national vat rules should be able to guide you towards claiming vat back without difficulty. For those who have just started trading internationally you’ll be able to claim vat back after vat registration and lower your costs to a large degree.