If you have already paid vat on the services or goods again and want to get the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme to get back vat that might already have been paid earlier in order to reduce your costs as well as get respite from the problem of double taxation over your goods or services.
Although you won’t be allowed to deduct the VAT tax amount directly from the next vat return, you will still be permitted to state that amount in the separate vat refund scheme. This scheme is available in the UK governed by certain conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have already been paid may be reclaimed. If you’re a vat registered trader in the United Kingdom that doesn’t 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 may 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. However, since the reclaiming rules might differ in other countries, you’ll need the services of an expert vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds from the relevant country. Your agent can act on your behalf once you provide them with a power of attorney or a letter or authority to accomplish this.
You can go for a vat reclaim no after 9 months within a year or so after you’ve paid the vat amount. You will first have to register your organization name and also 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 offered by the hmrc vat website in order to save on time and effort. Once you submit the necessary online vat form you will be issued a web based reference number that may indicate that your request is received by the vat refund department.
Although you will not need to send any paper documents, certain eu countries might request a scanned vat invoice to be attached to your vat refund request. Once you’ve sent your reclaiming request hmrc will send you a confirmation about the same within 15 days while the concerned eu country will usually provide you with a vat refund within 4 months, if all of your documents are typically in proper order. In the event further information is required from that eu country you’ll be able to expect your vat reclaim to get 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 also 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.