If you have already paid vat on your services or goods 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 to get back vat that might have already been paid earlier in order to reduce your costs as well as get relief from the problem of double taxation over your goods or services.
While you won’t be permitted to deduct the VAT tax amount straight from your next vat return, you will still be permitted to claim that amount in a separate vat refund scheme. This scheme is available in the UK subject to certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have already been paid may be reclaimed. If you’re a vat registered trader in the United Kingdom that does not have vat registration in the nation of origin you’ll be able to claim any vat paid in the country provided you meet some other vat rules.
You can also claim vat paid in another eu country if you have not got relief through some other vat scheme. You will have to make use of 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 expertise of a specialist vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds in the relevant country. Your agent can act on your behalf as soon as you let them have a power of attorney or a letter or authority to do so.
You can go in for a vat reclaim no later than 9 months in a year or so after you’ve paid the vat amount. You may first need to register your organization name and your agent?s name too in the event you plan on reclaiming vat through your agent. You should use the hm vat refunds service that’s a part of the vat online services provided by the hmrc vat website in order to save on time and effort. Once you submit the necessary online vat form you’ll be issued a web based reference number that may indicate that the request has been 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 be attached with your vat refund request. Once you’ve sent your reclaiming request hmrc will be sending you a confirmation regarding the same within 15 days even though the concerned eu country will usually offer you a vat refund within 4 months, if all of your documents are typically in proper order. In case further information is required from that eu country then you can 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 which have adopted vat including the UK offer vat refunds that may be claimed by following proper procedures and ultizing proper applications. You too can reclaim vat paid in any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.