When you have already paid vat on your services or goods again and would like to get the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme for getting back vat that might 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 won’t be allowed to deduct the VAT amount of taxes straight from the next vat return, you still be allowed to claim 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 are 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 can also claim vat paid in another eu country if you have not got relief through some other vat scheme. You will have 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 the reclaiming rules might differ abroad, you’ll need the expertise of an expert vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds in the relevant country. Your agent can act on your behalf once you provide them with a power of attorney or a letter or authority to accomplish this.
You can go for a vat reclaim no after 9 months within a year or so after you have paid the vat amount. You will first have to register your organization name and also your agent?s name too in case you plan on reclaiming vat through your agent. You need to use the hm vat refunds service that’s a part of the vat online services offered by the hmrc vat website so as to reduce time and effort. As soon as you submit the required online vat form you will be issued an online 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 request a scanned vat invoice to be attached with your vat refund request. Once you have sent your reclaiming request hmrc will be sending a confirmation about the same within 15 days while the concerned eu country will usually offer you a vat refund within 4 months, if all of your documents are in proper order. In case any further details are required from that eu country you’ll be able to expect your vat reclaim to get settled after around 8 months of the original application.
To prevent the problem of double taxation, most eu countries which have adopted vat such as 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 any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.