When you have already paid vat on your services or goods more than once and would like to get the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme for getting back vat that might have already been paid earlier so as to lower your costs as well as get relief from the issue of double taxation over your goods or services.
While you won’t be permitted to deduct the VAT tax amount directly from the next vat return, you will still be allowed to claim that amount in the separate vat refund scheme. This scheme is available in the UK subject to certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts that have previously been paid can be reclaimed. If you are a vat registered trader in the United Kingdom that doesn’t have vat registration in the country of origin then you can claim any vat paid in that country provided you meet some other vat rules.
You may also claim vat paid in another eu country if you haven’t 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 United Kingdom. However, since the reclaiming rules might differ in other countries, you might need the services 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 let them have a power of attorney or even a letter or authority to do so.
You can go for a vat reclaim no after 9 months in a year or so after you’ve paid the vat amount. You may first have to register your organization name and your agent?s name too in case you intend on reclaiming vat through your agent. You should use the hm vat refunds service that is a part of the vat online services offered by the hmrc vat website so as to reduce time and effort. Once you submit the necessary online vat form you’ll be issued an online reference number that will indicate that your request is received by the vat refund department.
While you will not need to send any paper documents, certain eu countries might request a scanned vat invoice to be attached to your vat refund request. Once you have sent your reclaiming request hmrc will be sending you a confirmation about the same within 15 days even though the concerned eu country will usually provide you with a vat refund within 4 months, if all of your documents are in proper order. In case further details are required from that eu country you’ll be able to 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 that have adopted vat including the UK offer vat refunds that may be claimed by using proper procedures and ultizing proper applications. You also 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.