When you have already paid vat on the goods or services more than once and want to get 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 already have been paid earlier in order to reduce your costs as well as get respite from the issue of double taxation over your services or goods.
While you will not be allowed to deduct the VAT tax amount straight from the next vat return, you still be permitted to claim that amount in a separate vat refund scheme. This scheme is available in the United Kingdom governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have previously been paid may be reclaimed. If you are a vat registered trader in the United Kingdom that doesn’t have vat registration in the country 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 haven’t got relief through some other vat scheme. You will have to make use of 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 might need the services of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act in your stead once you let them have a power of attorney or even a letter or authority to accomplish this.
You can go for a vat reclaim no later than 9 months within a year or so after you have paid the vat amount. You will first need to register your business name and also your agent?s name too in case you plan on reclaiming vat through 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 so as to reduce time and energy. As soon as you submit the necessary online vat form you’ll be issued an online reference number that may indicate that the request is received by the vat refund department.
Although 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 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 provide you with a vat refund within 4 months, if all your documents are in proper order. In the event further details are 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.
In order to avoid the situation of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that may be claimed by using proper procedures and using proper applications. You too can claim back 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.