If you have already paid vat on the goods or services again and want to get the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme for getting back vat that might have already been paid earlier in order to lower your costs as well as get respite from the problem of double taxation over your services or goods.
While you will not be allowed to deduct the VAT tax amount straight from the next vat return, you still be allowed to claim that amount in a separate vat refund scheme. This scheme is available in the UK governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts that have previously been paid may be reclaimed. If you are 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 that country provided you meet a few other vat rules.
You may also claim vat paid in another eu country if you have not got relief through any other vat scheme. You will have to use a standard vat reclaiming form through the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the United Kingdom. On the other hand, since the reclaiming rules might differ in other countries, you might need the services of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds in the relevant country. Your agent can act in your stead as soon as you let them have a power of attorney or even a letter or authority to accomplish this.
You can go in for a vat reclaim no after 9 months within a year or so after you’ve paid the vat amount. You may first have to register your organization name and also your agent?s name too in the event you intend on reclaiming vat using your agent. You need to use the hm vat refunds service that’s a part of the vat online services offered by the hmrc vat website in order to reduce time and effort. Once you submit the necessary online vat form you’ll 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 be attached with your vat refund request. Once you’ve sent your reclaiming request hmrc will be sending a confirmation about the same within 15 days while the concerned eu country will normally offer you a vat refund within 4 months, if all your documents are typically in proper order. In case further information is required from that eu country then you can expect your vat reclaim to be settled after around 8 months of your original application.
In order to avoid the problem of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that may be claimed by following 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 when you use the vat refund scheme.