In case you operate a trading business in the united kingdom or other EU country and also have imported services or goods which has already paid vat in the country of origin then you can claim vat back after vat registration. However,
it is important to study all different rules necessary for vat refund before you stake your claim for a vat reclaim.
Although tourists and certain other individuals can claim VAT or vat once they go back in order to their country by simply showing the initial vat invoice displaying the vat rate and vat amount, businesses need to furnish a lot more details before they are able to be eligible for a reimbursement. If you too have imported services or goods from a member EU country to the UK and have already paid vat in that country then in order to avoid double taxation and lower your costs, you ought to surely have a vat refund. Although you may not be in a position to directly deduct the vat amount in your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly use the vat online services provided by HM customs and excise customs vat or go to the hmrc vat website to register your organization first. If you’re 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 obtaining refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims in your stead. You can also appoint different vat agents in different countries and register them separately, especially if you import goods and services from different countries.
You should make sure that you retain all original documents of vat paid in the original country before you claim vat back. You need to fill up the vat form for vat reclaim before 9 months within the next calendar year once you have paid the original vat amount in order to be eligible for a a vat refund. However, this time period varies in various countries. You need to to climb over language barriers between various EU countries while submitting your tax documents. For instance, Poland stipulates that you just attach the faktura vat or tax invoice that is coded in Polish language before it’s sent for a reclaim. In such a case, the local vat agent would be in a very better position to comprehend the specific laws for each country.
After you have submitted all relevant documents to assert vat back, then you ought to get the vat refund in the designated time period specified by the exact country. In great britan the timeframe is generally around 4 months if your own claim is processed and approved without the need for additional proof. You can receive your vat refund in a EU country that you want or even in the UK 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 most likely be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires services or goods which have already paid vat in the country of origin before reaching the shores of one’s country where you have to pay vat again, you’ll be able to claim back the extra vat paid on them. A vat agent that’s well versed in international and national vat rules should be able to guide you towards claiming vat back without difficulty. If you have just started trading internationally you’ll be able to claim vat back after vat registration and lower your costs to some great extent.