If you operate a trading business in the UK or any 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, you should study all different rules necessary for vat refund before you stake your claim for any vat reclaim vat control.
Although tourists and certain other people can claim VAT or value added tax once they return back to their country simply by showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they are able to be eligible for a a refund. In the event you too have imported services or goods originating from a member EU country to the UK and have already paid vat in that country then to prevent double taxation and reduce your costs, you should surely have a vat refund. Even though you might not be able to directly deduct the vat amount in your next vat return, you can surely claim vat back from your country of origin provided you follow their vat rules.
If you are not vat registered then you can use the vat online services offered by HM customs and excise customs vat or visit the hmrc vat web site to register your business 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 applying for refunds and handling vat returns. Now you can 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, particularly 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 the vat form for vat reclaim before 9 months in the next calendar year once you have paid the initial vat amount so that you can be eligible for a a vat refund. However, this time around 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 that is written in Polish language before it is sent for any reclaim. In such a case, a local vat agent will be in a stronger position to understand the precise laws of each country.
After you have submitted all relevant documents to claim vat back, then you ought to receive the vat refund in the designated time frame specified by the exact country. In the UK the timeframe is generally around 4 months when your claim is processed and approved without any need for additional proof. You may receive your vat refund in any EU country that you desire or perhaps britain 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 usually be looked with suspicion and handled strictly by the concerned vat authorities of that country vat number.
If your business requires services or goods which have already paid vat in the country of origin before reaching the shores of your country where you need to pay vat again, you’ll be able to claim back the extra vat paid on them. A vat agent that is well versed 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 you’ll be able to claim vat back after vat registration and lower your costs to a great extent.