When you have already paid vat on the goods or services more than once and want to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme to get back vat which may have already been paid earlier in order to lower your costs and even get respite from the problem of double taxation over your services or goods.
While you will not be allowed to deduct the vat numbers amount of taxes directly from your next vat return, you still be allowed to state that amount in the separate vat refund scheme. This scheme is available in the UK governed by certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts that have already been paid can be reclaimed. If you’re 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 a few 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 need 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’ll 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 on your behalf once you let them have a power of attorney or even a letter or authority to accomplish this.
It is possible to go for a vat reclaim no later than 9 months within a calendar year after you have paid the vat amount. You may first have to register your organization name and also your agent?s name too in case you plan on reclaiming vat using your agent. You should use the hm vat refunds service that’s a part of the vat online services offered by the hmrc vat website so as to save on time and energy. As soon as you submit the necessary online vat form you will be issued a web based reference number that will 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 generally be attached with your vat refund request. Once you’ve sent your reclaiming request hmrc will send 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 in proper order. In case any further details are 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 situation 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 claim back vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.