In case you operate a trading business in the united kingdom or other EU country and also have imported goods or services which has already paid vat in the country of origin you’ll be able to claim vat back after vat registration. However,
it is important to study many different rules necessary for vat refund before you decide to stake your claim for a vat reclaim.
Although tourists and certain other people can claim VAT or vat when they go back to their country by simply showing the initial vat invoice displaying the vat rate and vat amount, businesses have to furnish many more details before they are able to be eligible for a a refund. In the event you too have imported goods or services originating from a member EU country into the UK and have already paid vat in the country then in order to avoid double taxation and lower your costs, you should surely have a vat refund. Although you might not be in a position to directly deduct the vat amount in your next vat return, you can surely claim vat back from your country of origin provided you follow their vat rules.
If you are not vat registered then you can utilize the vat online services offered by HM customs and excise customs vat or visit the hmrc vat web site to register your business first. If you’re not internet savvy or have trouble in comprehending vat rules then it would be better to appoint a vat agent that delivers all vat services including obtaining refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims in your stead. You can also appoint different vat agents in different countries and register them separately, particularly if you import goods and services from different countries.
You should make sure that you retain all original documents of vat paid in the original country before you can claim vat back. You should 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 be eligible for a a vat refund. However, this time around 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 attach the faktura vat or tax invoice which is written in Polish language before it’s sent for a reclaim. In such a case, a local vat agent would be in a very better position to comprehend the precise laws of each country.
After you have submitted all relevant documents to assert vat back, then you ought to get the vat refund in the designated time period specified by the exact country. In the UK the timeframe is generally around 4 months when your claim is processed and approved without the requirement for additional proof. You can receive your vat refund in a EU country that you want or even in britain provided you have a valid banking account within the desired country. However, remember that to submit proper documentation since any rejected vat claim will usually be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires goods or services which have already paid vat in the nation of origin before reaching the shores of your country where you have to pay vat again, then you can reclaim the extra vat paid on them. A vat agent that is amply trained in international and national vat rules should be able to guide you towards claiming vat back without difficulty. If you have just started trading internationally you’ll be able to claim vat back after vat registration and lower your costs to a large degree.