When you have already paid vat on your goods or services again and would like 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 and even get respite from the issue of double taxation over your services or goods.
Although you won’t be permitted to deduct the VAT tax amount straight from the next vat return, you still be allowed to state 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 will often have such procedures where vat amounts which 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 nation of origin you’ll be able to 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 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 reclaiming rules might differ abroad, you might need the services of a specialist vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds in the relevant country. Your agent can act in your stead as soon as you provide them with a power of attorney or even a letter or authority to do so.
You can go for a vat reclaim no later than 9 months in a calendar year after you’ve paid the vat amount. You may first have to register your organization name and your agent?s name too in the event you plan 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 an online reference number that may indicate that your request has been 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 have sent your reclaiming request hmrc will send you a confirmation about 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 the event further information is required from that eu country then you can expect your vat reclaim to get settled after around 8 months of the original application.
To prevent the situation of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that can be claimed by following proper procedures and ultizing proper applications. You too can claim back 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.