When you have already paid vat on your goods or services again and want to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme to get back vat which may have already been paid earlier so as to reduce your costs and even get respite from the problem of double taxation over your services or goods.
Although you won’t be allowed to deduct the VAT tax amount directly from the next vat return, you still be allowed to state that amount in the separate vat refund scheme. This scheme is available in the United Kingdom subject to certain conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have previously been paid may be reclaimed. If you are a vat registered trader in the UK that does not have vat registration in the nation of origin then you can claim any vat paid in the country provided you meet a few 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 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 the 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 successfully 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 do so.
You can go in for a vat reclaim no later than 9 months within a calendar year after you have paid the vat amount. You may first have to register your business 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’s a part of the vat online services offered by the hmrc vat website so as to reduce time and effort. Once you submit the necessary online vat form you will be issued an online 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 ask for a scanned vat invoice to generally be attached to your vat refund request. Once you have sent your reclaiming request hmrc will send you a confirmation regarding the same within 15 days while the concerned eu country will normally offer you a vat refund within 4 months, if all your documents are in proper order. In the event any further information is required from that eu country you’ll be able to expect your vat reclaim to be settled after around 8 months of your original application.
To prevent the problem of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that can be claimed by following proper procedures and ultizing proper applications. You also can claim back vat paid in any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.