When you have already paid vat on the goods or services more than once and want to get the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme for getting back vat that might already have been paid earlier in order to lower your costs as well as get respite from the issue of double taxation over your services or goods.
While you won’t be allowed to deduct the vat numbers amount of taxes directly from your next vat return, you still be permitted to claim that amount in the 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 which have previously been paid can be reclaimed. If you are a vat registered trader in the United Kingdom that does not have vat registration in the country 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 haven’t got relief through some other vat scheme. You will need to make use of 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. On the other hand, since reclaiming rules might differ abroad, you might need the services of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act in your stead once you let them have a power of attorney or even 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’ve paid the vat amount. You will first have to register your business name and also your agent?s name too in case you intend on reclaiming vat through your agent. You need to use the hm vat refunds service that is a part of the vat online services offered by the hmrc vat website in order to reduce time and energy. As soon as you submit the required online vat form you will be issued a web based reference number that will 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 ask for a scanned vat invoice to generally be attached to your vat refund request. Once you’ve sent your reclaiming request hmrc will be sending you a confirmation regarding the same within 15 days even though the concerned eu country will normally provide you with a vat refund within 4 months, if all of your documents are in proper order. In the event any further details are required from that eu country then you can expect your vat reclaim to be settled after around 8 months of the original application.
To prevent the problem of double taxation, most eu countries which 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.