If you have already paid VAT inside a foreign eu country and have to pay for exactly the same again throughout your home country then you can reclaim vat to reduce the burden of double checkvatnumber taxation. The whole process could be completed online, particularly if your vat registered organization is located in the UK in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat easy.
If you have purchased goods from another vat enabled country within the European Union such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you don’t have a vat registered business and still have already paid vat in the country of origin then you can and should claim that vat back. This can not just reduce your product cost but also enable vital funds to circulate back into your organization. Although the vat reclaiming process usually takes between four to 8 months to finish, you can simply appoint a vat agent that is a specialist in eu vat and uk vat refund rules. This will help you to concentrate on your business while your agent attempts to reclaim vat on your behalf by utilizing 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 need to sign up for vat refund with the hmrc. You’ll have maximum of 9 months following the end of a year or so to make your vat refund application. As you can simply fill out the web based vat form to reclaim any previously paid vat, you won’t need to fill out and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist on taking a look at original invoices which you may have to dispatch in order to get an effective refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own version of the vat invoice and also have different vat rates for a number of goods and services. For example, 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 products or 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 very same. In case you have made a vat reclaim in a eu country then you’ll usually receive the refund amount in their currency. You may either transfer the refund figure to an account in that country or directly arrange for the money to be received in your UK bank account by providing them the required details as well as your banking account number.
In case you constantly need to import services or goods to the UK where vat was already paid you then should sign up for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat then you can accurately price your items and services while getting a necessary financial injection in your business.