When you have already paid vat on the services or goods more than once and want 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 which may have already been paid earlier in order to lower your costs as well as get relief from the problem of double taxation over your services or goods.
Although you won’t be allowed to deduct the VAT tax amount straight from your next vat return, you still be permitted to claim that amount in the separate vat refund scheme. This scheme is available in the United Kingdom subject to certain terms and conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have already been paid may be reclaimed. If you’re a vat registered trader in the United Kingdom that doesn’t have vat registration in the country of origin you’ll be able to 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 make use of 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. On the other hand, since reclaiming rules might differ abroad, you’ll need the services of an expert vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act in your stead as soon as you provide them with a power of attorney or 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 have paid the vat amount. You will first need 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 is a part of the vat online services provided by the hmrc vat website so as to save on time and energy. As soon as you submit the necessary online vat form you’ll be issued an online reference number that will indicate that the request has been 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 with your vat refund request. Once you’ve sent your reclaiming request hmrc will be sending a confirmation regarding the same within 15 days while the concerned eu country will normally provide you with a vat refund within 4 months, if all 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 the original application.
To prevent the situation of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that can be claimed by following proper procedures and using proper applications. You also can claim back vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.