If you have already paid vat on your services or goods more than once 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 in order to lower your costs and even get relief from the issue of double taxation over your services or goods.
Although you won’t be permitted to deduct the VAT amount of taxes straight from the next vat return, you will still be allowed to state that amount in a separate vat refund scheme. This scheme is available in the United Kingdom 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 country of origin then you can claim any vat paid in the country provided you meet a few 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 need to use a standard vat reclaiming form from the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the UK. However, since reclaiming rules might differ abroad, you might need the expertise 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 provide them with a power of attorney or even a letter or authority to accomplish this.
It is possible to go for a vat reclaim no after 9 months within a calendar year after you’ve paid the vat amount. You will first need to register your organization name and your agent?s name too in the event you intend 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 reduce time and effort. Once you submit the required online vat form you will be issued a web based reference number that may indicate that the request is received by the vat refund department.
While 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’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 normally provide you with a vat refund within 4 months, if all of your documents are typically in proper order. In case further details are required from that eu country then you can expect your vat reclaim to get settled after around 8 months of your original application.
To prevent the situation of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You too can reclaim vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.