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, you should study many different rules required for vat refund before you stake your claim for any vat reclaim.
Although tourists and certain other individuals can claim VAT or value added tax when they go back to their own country by simply showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish a lot more details before they are able to qualify for reimbursement. If you too have imported services or goods originating from a https://vatcontrol.com member EU country to the UK and have already paid vat in the country then to prevent double taxation and reduce your costs, you should surely have a vat refund. Even though you might not be in a position to directly deduct the vat amount in your next vat return, you may surely claim vat back from your country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly use the vat online services provided by HM customs and excise customs vat or go to the hmrc vat website to register your organization first. If you are not internet savvy or have trouble in comprehending vat rules it could well be better to appoint a vat agent that delivers all vat services including applying for 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 need to ensure that you retain all original documents of vat paid in the original country before you can claim vat back. You should fill the vat form for vat reclaim before 9 months within the next calendar year after you have paid the original vat amount in order to qualify for a vat refund. However, this time 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 coded in Polish language before it is sent for any reclaim. When this happens, the local vat agent would be in a very better position to understand the specific laws for each country.
After you have submitted all relevant documents to claim vat back, then you should get the vat refund in the designated time period specified by the exact country. In the UK the time period is generally around 4 months if your own claim is processed and approved without the need for additional proof. You may receive your vat refund in a EU country that you want or even in the UK provided you have a valid bank account within the desired country. However, remember that to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires services or goods which have already paid vat in the nation of origin before reaching the shores of one’s country where you have to pay vat again, you’ll be able to claim back the excess vat paid on them. A vat agent that’s well versed in international and national vat rules should be able to guide you towards claiming vat back with ease. For those who have just started trading internationally then you can claim vat back after vat registration and lower your costs to a great extent.