If you have already paid vat on your services or goods 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 that might already have been paid earlier in order to reduce your costs as well as get relief from the problem of double taxation over your services or goods.
While you will not be permitted to deduct the VAT amount of taxes directly from your next vat return, you will still be permitted to state that amount in the separate vat refund scheme. This scheme is available in the United Kingdom governed by certain terms and conditions. Most eu countries that follow vat will often have such procedures where vat amounts which have already been paid can be reclaimed. If you’re a vat registered trader in the UK 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 some 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 need 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 United Kingdom. However, since reclaiming rules might differ in other countries, you’ll need the expertise of an expert vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds in 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 in for a vat reclaim no later than 9 months within a calendar year after you’ve paid the vat amount. You may first have to register your organization name and your agent?s name too in case you intend on reclaiming vat through 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 in order to save on time and energy. As soon as you submit the required online vat form you’ll be issued an online reference number that may 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 request 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 regarding 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 typically in proper order. In case any 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 your 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 using proper procedures and ultizing proper applications. You too can claim back vat paid in any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.