When you have already paid vat on the goods or services more than once and want to get 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 have already been paid earlier so as to lower your costs and even get respite from the issue of double taxation over your goods or services.
While you will not be permitted to deduct the VAT tax amount straight from your next vat return, you still be allowed to state that amount in the separate vat refund scheme. This scheme is available in the United Kingdom governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts that have already been paid can be reclaimed. If you’re a vat registered trader in the United Kingdom that doesn’t have vat registration in the nation of origin you’ll be able to claim any vat paid in the country provided you meet a few 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 have to use a standard vat reclaiming form through 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 might need the services of an expert vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act in your stead as soon as you let them have a power of attorney or a letter or authority to do so.
You can go for a vat reclaim no later than 9 months within a calendar year after you’ve paid the vat amount. You may first need to register your organization name and your agent?s name too in the event you plan on reclaiming vat using your agent. You should use the hm vat refunds service that’s a part of the vat online services provided by the hmrc vat website so as to reduce time and effort. Once you submit the required online vat form you will be issued a web based reference number that may indicate that the request has been received by the vat refund department.
Although 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 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 the event further information is required from that eu country you’ll be able to expect your vat reclaim to be settled after around 8 months of your original application.
In order to avoid the situation of double taxation, most eu countries that have adopted vat such as the UK offer vat refunds that can be claimed by following proper procedures and using proper applications. You also can reclaim vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.