When you have already paid vat on the goods or services again and would like to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme to get back vat that might already have been paid earlier so as to reduce your costs as well as get respite from the issue of double taxation over your services or goods.
Although you will not be allowed to deduct the VAT tax amount directly from the next vat return, you will still be permitted to state that amount in a 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 already been paid can be reclaimed. If you are a vat registered trader in the UK 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 any other vat scheme. You will need to make use of 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 UK. However, since the reclaiming rules might differ abroad, you might need vatcheck the services of an expert 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 provide them with a power of attorney or even a letter or authority to accomplish this.
It is possible to go for a vat reclaim no after 9 months in a year or so after you’ve paid the vat amount. You will first need to register your business name and also your agent?s name too in case you plan on reclaiming vat using your agent. You should use the hm vat refunds service that’s 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 necessary online vat form you’ll be issued an online reference number that will indicate that your request is 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’ve sent your reclaiming request hmrc will send a confirmation regarding the same within 15 days while the concerned eu country will normally offer you a vat refund within 4 months, if all your documents are in proper order. In case 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 using 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.