In case you have already paid VAT inside a foreign eu country and have to pay for the same again throughout your home country then you can reclaim vat to reduce the load of double taxation. The whole process could be completed online, especially if your vat registered organization is located in the UK where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat an easy process.
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 do not 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 will not only reduce your product cost but will also allow for vital funds to flow back to your business. Although the vat reclaiming process typically takes between four to 8 months to finish, you can simply appoint a vat agent vatnumbers that is an expert in eu vat and uk vat refund rules. This will help you to focus on your business while your agent tries to reclaim vat as your representative by using the online vat refund scheme.
Before you can post your first claim for vat, you will have to become a vat registered trader in the United Kingdom and will also have to sign up for vat refund with the hmrc. You will have a maximum of 9 months following the end of the calendar year for making your vat refund application. As you can easily fill out the online vat form to reclaim any previously paid vat, you won’t have to fill out and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries may also insist on looking at original invoices that you might 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 have different vat rates for various products or 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 issue of double taxation on products or services. You simply can’t deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the very same. If you have made a vat reclaim within a eu country then you’ll usually get the refund amount in their currency. You can either transfer the refund figure to a merchant account in the country or directly arrange for the money to generally be received in your UK bank account by giving them the required details as well as your bank account number.
In case you constantly need to import goods or services into the UK where vat was already paid then you should register for the vat refund scheme offered by the hmrc vat department. Once you successfully reclaim vat you’ll be able to accurately price your products and services while getting a necessary financial injection in your business.