If you have already paid vat on the 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 already have been paid earlier in order to reduce your costs and even get relief from the issue of double taxation over your goods or services.
Although you won’t be allowed to deduct the VAT amount of taxes directly from your next vat return, you will still be allowed to state that amount in a separate vat refund scheme. This scheme is available in the UK subject to certain terms and 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 UK that doesn’t have vat registration in the country of origin then you can claim any vat paid in the country provided you meet some other vat rules.
You can 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 from the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the UK. However, since the reclaiming rules might differ abroad, you might need the expertise 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 on your behalf 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 later than 9 months within a calendar year after you’ve paid the vat amount. You will first need to register your business name and also 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 so as to reduce time and energy. Once you submit the required online vat form you will be issued an online reference number that will 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 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 while the concerned eu country will normally offer you a vat refund within 4 months, if all of your documents are in proper order. In case further information is required from that eu country you’ll be able to expect your vat reclaim to get settled after around 8 months of the original application.
To prevent the problem of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that may be claimed by following proper procedures and using 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.