When you have already paid vat on your services or goods 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 which may have already 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.
Although you won’t be permitted to deduct the VAT amount of taxes directly from the next vat return, you still be allowed to state that amount in the separate vat refund scheme. This scheme is available in the UK subject to certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have previously been paid may be reclaimed. If you’re a vat registered trader in the UK that does not have vat registration in the nation of origin then you can claim any vat paid in that country provided you meet some other vat rules.
You can also claim vat paid in another eu country if you have not got relief through some other vat scheme. You will have to use 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 United Kingdom. On the other hand, since reclaiming rules might differ abroad, you’ll need the expertise of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds in the relevant country. Your agent can act in your stead as soon as you let them have 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 may first need to register your business name and your agent?s name too in the event you intend on reclaiming vat using your agent. You should use the hm vat refunds service that is a part of the vat online services provided by the hmrc vat website so as to reduce time and effort. As soon as you submit the necessary online vat form you’ll be issued an online reference number that may 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 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 typically in proper order. In the event further details are required from that eu country you’ll be able to 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 that have adopted vat such as the UK offer vat refunds that may be claimed by following proper procedures and using 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.