In case 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 burden of double checkvatnumber.com taxation. The whole process could be completed online, particularly if your vat registered organization is situated in the UK where the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme which makes reclaiming vat easy.
If you have purchased goods from another vat enabled country within the European Union such as 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 certainly and must claim that vat back. This will not only reduce your product cost but also allow for vital funds to flow back to your business. Even though the vat reclaiming process usually takes between four to eight months to complete, you can simply appoint a vat agent that’s an expert in eu vat and uk vat refund rules. This will help you to concentrate on your organization while your agent attempts to reclaim vat as your representative by using the online vat refund scheme.
Before you post your first claim for vat, you will have to become a vat registered trader in the United Kingdom and will also have to sign up for vat refund with the hmrc. You’ll have maximum of 9 months following the end of a year or so for making your vat refund application. As you can easily complete the online vat form to reclaim any previously paid vat, you won’t have to complete and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries might also insist upon taking a look at original invoices that you might need to dispatch in order 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 a 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 prevent the issue of double taxation on products or services. You cannot deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the very same. If you have made a vat reclaim in a eu country then you will usually receive the refund amount in their currency. You can either transfer the refund figure to a merchant account in the country or directly arrange for the money to generally be received within your UK banking account by providing them the required details as well as your bank account number.
If you constantly have to import goods or services into the UK where vat was already paid then you should register for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat then you can accurately price your products and services while getting a necessary financial injection in your business.