In case you run a trading business in the UK or other EU country and have imported goods or services 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 all different rules required for vat refund before you stake your claim for a vat reclaim vat control.
Although tourists and certain other individuals can claim VAT or value added tax once they return back to their country simply by showing the initial vat invoice displaying the vat rate and vat amount, businesses need to furnish a lot more details before they are able to qualify for a refund. If you too have imported services or goods from a member EU country into the UK and also have already paid vat in the country then in order to avoid double taxation and lower your costs, you ought to surely apply for a vat refund. Although you may not be able to directly deduct the vat amount as part of your next vat return, you can surely claim vat back from your country of origin provided you follow their vat rules.
If you’re not vat registered then you can use the vat online services provided by HM customs and excise customs vat or go to the hmrc vat web site to register your organization first. If you are not internet savvy or have trouble in comprehending vat rules it would be better to appoint a vat agent that provides 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 may also appoint different vat agents in several countries and register them separately, particularly if you import services and goods from different countries.
You should ensure that you retain all original documents of vat paid in the original country before you can claim vat back. You should fill the vat form for vat reclaim before 9 months in the next calendar year after 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 need to to climb over language barriers between various EU countries while submitting your tax documents. For instance, Poland stipulates that you attach the faktura vat or tax invoice that is written in Polish language before it’s sent for a reclaim. In such a case, a local vat agent will be in a very stronger position to comprehend the specific laws for each country.
After you have submitted all relevant documents to assert vat back, then you should get the vat refund in the designated time period specified by the specific country. In the UK the time period is usually around 4 months if your own claim is processed and approved without the requirement for additional proof. You can receive your vat refund in any EU country that you want or even in the UK provided you have a valid bank account within the desired country. However, you should remember to submit proper documentation since any rejected vat claim will usually be looked with suspicion and handled strictly by the concerned vat authorities of the country vat control.
If your business requires goods or services which have already paid vat in the nation of origin before reaching the shores of your country in which you need to pay vat again, you’ll be able to reclaim the excess vat paid on them. A vat agent that’s amply trained in international and national vat rules will be able to guide you towards claiming vat back with ease. If you have just started trading internationally then you can claim vat back after vat registration and reduce your costs to a great extent.