If you have already paid VAT in a foreign eu country and have to pay extra for exactly the same again in your own country then you can reclaim vat to lower the load of double checkvatnumber taxation. The entire procedure can be completed online, especially if your vat registered business is located in the United Kingdom in which the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme that makes reclaiming vat easy.
In case you have purchased goods from another vat enabled country within the European Union like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not have a vat registered business and still have already paid vat in the country of origin then you can and should claim that vat back. This can not just reduce your product cost but will also enable vital funds to circulate back into your organization. Although the vat reclaiming process usually takes between four to 8 months to complete, you can easily appoint a vat agent that is a specialist in eu vat and uk vat refund rules. This should help you to focus on your business while your agent attempts to reclaim vat as your representative by utilizing the online vat refund scheme.
Before you post your first claim for vat, you will need to be a vat registered trader in the UK and will need to sign up for vat refund with the hmrc. You’ll have maximum of 9 months following the end of the calendar year for making your vat refund application. As you can simply fill out the online vat form to reclaim any previously paid vat, you won’t need to complete and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist upon looking at original invoices which you may have to dispatch to get an effective refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own version of the vat invoice and also have different vat rates for a number of goods and services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some kind of vat refunds to avoid the issue of double taxation on goods and services. You simply can’t deduct the vat refund amount within your routine vat returns but will instead have to use the vat refund scheme for the same. If you have made a vat reclaim in a eu country then you’ll usually receive the refund amount in their currency. You may either transfer the refund figure to an account in the country or directly arrange for the money to generally be received within your UK bank account by giving them the required details as well as your banking account number.
In case you constantly need to import services or goods into the UK where vat was already paid then you should sign up for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat you’ll be able to accurately price your items and services while getting a necessary financial injection in your business.