In case you run a trading business in the UK or other EU country and also have imported services or goods which has already paid vat in the country of origin then you can claim vat back after vat registration. However, it is important to study many different rules required for vat refund before you decide to stake your claim for a vat reclaim vies.
Although tourists and certain other individuals can claim VAT or value added tax when they go back to their country by simply showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish a lot more details before they can qualify for a refund. In the event you too have imported goods or services from a member EU country into the UK and have already paid vat in the country then to prevent double taxation and reduce your costs, you ought to surely have a vat refund. Although you may not be in a position to directly deduct the vat amount in your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly use the vat online services offered by HM customs and excise customs vat or visit the hmrc vat website to register your organization first. If you are not internet savvy or have trouble in comprehending vat rules then it could well be better to appoint a vat agent that provides all vat services including applying for refunds and handling vat returns. Now you can authorize your vat agent to submit your vat claims on your behalf. You may also appoint different vat agents in different countries and register them separately, especially if you import services and goods from different countries.
You should make sure that you retain all original documents of vat paid within the original country before you claim vat back. You need to fill up the vat form for vat reclaim before 9 months in the next calendar year once you have paid the initial vat amount so that you can qualify for a vat refund. However, this time period varies in various countries. You need to to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you just attach the faktura vat or tax invoice which is coded in Polish language before it’s sent for a reclaim. In such a case, a local vat agent will be in a better position to understand the specific laws of each country.
Once you have submitted all relevant documents to assert vat back, then you should receive the vat refund in the designated time frame specified by the exact country. In great britan the time period is generally around 4 months when your claim is processed and approved without any need for additional proof. You may receive your vat refund in a EU country that you desire or even in britain provided you’ve got a valid banking account within the desired country. However, you should remember to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of that country vat registration.
In case your business requires services or goods which have already paid vat in the country of origin before reaching the shores of your country in which you need to pay vat again, you’ll be able to claim back the excess vat paid on them. A vat agent that’s amply trained in international and national vat rules should be able to help you towards claiming vat back without difficulty. For those who have just started trading internationally you’ll be able to claim vat back after vat registration and lower your costs to some great extent.