You can reclaim vat to lower the burden of double taxation

If you have already paid VAT inside a foreign eu country and also have to pay for exactly the same again in your own country then you can certainly reclaim vat to lower the burden of double taxation. The entire procedure can be completed online, especially if your vat registered business is situated in the United Kingdom where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat an easy process.

In case you have purchased goods from another vat enabled country within the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you don’t have a vat registered business and have already paid vat in the country of origin then you can certainly and should claim that vat back. This can not only lower product cost but also enable vital funds to flow back to your business. Even though the vat reclaiming process usually takes between four to eight months to finish, you can easily appoint a vat agent that is a specialist in eu vat and uk vat refund rules. This should help you to focus on your business while your agent tries to reclaim vat on your behalf by using the online vat refund scheme.

Before you can post the first claim for vat, you will have to be a vat registered trader in the United Kingdom and will also have to sign up for vat refund with the hmrc. You’ll have maximum of 9 months following the end of a year or so for making your vat refund application. Since you can simply complete the online vat form to reclaim any previously paid vat, you won’t have to complete and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries may also insist upon looking at original invoices that you might have to dispatch to get a successful refund. Again, your vat agent can help you to complete all necessary formalities.

Many eu countries have their own own version of a vat invoice and also have different vat rates for a number of products or services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some form of vat refunds to prevent the problem of double taxation on goods and services. You simply can’t deduct the vat refund amount within your routine vat returns but will instead have to use the vat refund scheme for the same. In case you have made a vat reclaim in a eu country then you will usually get the refund amount in their currency. You can either transfer the refund amount to a merchant account in that country or directly arrange for the money to generally be received within your UK banking account by providing them the necessary details as well as your banking account number.

In case you constantly need to import goods or services to the UK where vat has already been paid then you should register for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat you’ll be able to accurately price your items and services while getting a much needed financial injection in your business.