If you have already paid VAT in a foreign eu country and also have to pay for the same again throughout your home country then you can certainly reclaim vat to reduce the burden of double checkvatnumber taxation. The entire process could be completed online, particularly if your vat registered organization is located in the UK in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat an easy process.
If you have purchased goods from another vat enabled country in the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not have a vat registered business and have already paid vat in the country of origin then you can certainly and should claim that vat back. This will not only lower product cost but will also allow for vital funds to flow back to your organization. Even though the vat reclaiming process typically takes between four to eight months to complete, you can simply appoint a vat agent that’s an expert in eu vat and uk vat refund rules. This should help you to concentrate on your organization while your agent tries to reclaim vat on your behalf by using the online vat refund scheme.
Before you post the first claim for vat, you will need to become a vat registered trader in the UK and will need to sign up for vat refund with the hmrc. You’ll have maximum of 9 months after the end of a year or so to make your vat refund application. As you can easily complete the web based vat form to reclaim any previously paid vat, you won’t need to complete and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries may also insist upon looking at original invoices which you may need to dispatch to get a successful refund. Again, your vat agent can help you to complete all necessary formalities.
Many eu countries have their own own version of the vat invoice and have different vat rates for a number of goods and services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some kind of vat refunds to prevent the issue of double taxation on products or services. You simply can’t deduct the vat refund amount within your routine vat returns but will instead need to use the vat refund scheme for the same. In case you have made a vat reclaim in a eu country then you will usually get the refund amount in their currency. You can either transfer the refund figure to a merchant account in the country or directly arrange for the money to be received in your UK banking account by providing them the necessary details as well as your banking account number.
In case you constantly have to import services or goods into the UK where vat was already paid you then should sign up for the vat refund scheme provided by the hmrc vat department. As soon as you successfully reclaim vat you’ll be able to accurately price your items and services while receiving a much needed financial injection in your business.