If you run a trading business in the united kingdom or any other EU country and also have imported services or goods that has already paid vat in the country of origin you’ll be able to claim vat back after vat registration. However, it is important to study many different rules necessary for vat refund before you stake your claim for any vat reclaim.
Although tourists and certain other people can claim VAT or vat when they return back in order to their country by simply showing the original vat check vat invoice displaying the vat rate and vat amount, businesses have to furnish many more details before they can be eligible for a reimbursement. If you too have imported services or goods from a member EU country into the UK and also have already paid vat in that country then in order to avoid double taxation and reduce your costs, you ought to surely apply for a vat refund. Even though you may not be in a position to directly deduct the vat amount in your next vat return, you can surely claim vat back from the country of origin provided you follow their vat rules.
If you are not vat registered then you can certainly utilize the vat online services offered by HM customs and excise customs vat or visit the hmrc vat website to register your business first. If you are not internet savvy or have trouble in comprehending vat rules then it would be better to appoint a vat agent that provides all vat services including applying for refunds and handling vat returns. Now you can authorize your vat agent to submit your vat claims on your behalf. You may also appoint different vat agents in several countries and register them separately, particularly if you import goods and services from different countries.
You need to ensure that you retain all original documents of vat paid in the original country before you can claim vat back. You need to fill up the vat form for vat reclaim before 9 months in the next twelve months once you have paid the original vat amount in order to qualify for a vat refund. However, this time period varies in different countries. You might also need 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 written in Polish language before it’s sent for any reclaim. When this happens, the local vat agent would be in a very better position to comprehend the precise laws of each country.
After you have submitted all relevant documents to assert vat back, then you ought to get the vat refund within the designated time period specified by the exact country. In great britan the timeframe is usually around 4 months if your own claim is processed and approved without the need for additional proof. You may receive your vat refund in any EU country that you want or perhaps britain provided you’ve got a valid bank account in the desired country. However, you should remember to submit proper documentation since any rejected vat claim will usually be looked with suspicion and handled strictly by the concerned vat authorities of the country.
If your business requires services or goods that have already paid vat in the nation of origin before reaching the shores of your country in which you need to pay vat again, you’ll be able to reclaim the excess vat paid on them. A vat agent that is amply trained 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.