If 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 may use the vat refund scheme for getting back vat that might have already been paid earlier in order to lower your costs as well as get respite from the problem of double taxation over your goods or services.
While you won’t be allowed to deduct the VAT amount of taxes directly from the next vat return, you still be allowed to claim that amount in the separate vat refund scheme. This scheme is available in the United Kingdom subject to certain terms and 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 United Kingdom that doesn’t have vat registration in the nation of origin you’ll be able to claim any vat paid in the 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 need to use 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. On the other hand, since reclaiming rules might differ in other countries, you might need the services of an expert 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 on your behalf once you provide them with a power of attorney or even a letter or authority to do so.
You can go for a vat reclaim no after 9 months within a year or so after you have paid the vat amount. You will first have to register your organization name and your agent?s name too in case you plan on reclaiming vat using your agent. You need to use the hm vat refunds service that is a part of the vat online services offered by the hmrc vat website in order to reduce time and effort. As soon as you submit the required online vat form you will be issued an online reference number that will indicate that the request has been 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 have sent your reclaiming request hmrc will be sending a confirmation about the same within 15 days even though the concerned eu country will usually offer you a vat refund within 4 months, if all your documents are typically in proper order. In the event further details are required from that eu country then you can expect your vat reclaim to be settled after around 8 months of your original application.
In order to avoid the problem of double taxation, most eu countries that have adopted vat such as the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You also can reclaim vat paid in any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.