You can reclaim vat to reduce the burden of double taxation

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 lower the load of double taxation. The entire process could be completed online, especially if your vat registered organization is situated in the UK where the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme that makes reclaiming vat easy.

If you have purchased goods from another vat enabled country within the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you don’t have a vat registered business and still have already paid vat in the country of origin then you can certainly and should claim that vat back. This can not only reduce your product cost but will also allow for vital funds to flow back into your organization. Even though the vat reclaiming process usually takes between four to eight months to finish, you can easily appoint a vat agent that is an expert in eu vat and uk vat refund rules. This will help you to focus on your business while your agent tries to reclaim vat on your behalf by using the online vat refund scheme.

Before you can post your first claim for vat, you will have to be a vat registered trader in the UK and will need to register for vat refund with the hmrc. You will have a maximum of 9 months after the end of a calendar year for making your vat refund application. Since you can simply fill out the web based vat form to reclaim any previously paid vat, you will not have to complete and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries may also insist upon taking a look at original invoices which you may have to dispatch to get a successful refund. Again, your vat agent can assist you to complete all necessary formalities.

Many eu countries have their own own version of the vat invoice and also have different vat rates for various products or services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some form of vat refunds to prevent the issue of double taxation on goods and services. You simply can’t deduct the vat refund amount within your routine vat returns but will instead have 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 that country or directly arrange for the money to be received within your UK banking account by providing them the necessary details as well as your bank account number.

If you constantly have to import goods or services into the UK where vat has already been paid then you should register 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 getting a necessary financial injection in your business.