If you have already paid VAT inside a foreign eu country and have to pay for the same again in your own country then you can reclaim vat to lower the burden of double taxation. The whole process could be completed online, particularly if your vat registered organization is located in the United Kingdom in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat an easy process.
If you have purchased goods from another vat enabled country in the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you don’t have a vat registered business and have already paid vat in the country of origin then you can and must claim that vat back. This will https://vatcontrol.com/vat not just lower product cost but will also enable vital funds to circulate back to your business. Although the vat reclaiming process typically takes between four to eight months to finish, you can simply appoint a vat agent that is an expert in eu vat and uk vat refund rules. This should help you to focus on your business while your agent attempts to reclaim vat on your behalf by using the online vat refund scheme.
Before you can post the first claim for vat, you will need to be a vat registered trader in the United Kingdom and will also have to register for vat refund with the hmrc. You’ll have maximum of 9 months following the end of the calendar year to make your vat refund application. Since you can easily fill out the web based vat form to reclaim any previously paid vat, you will not have to complete and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist upon looking at original invoices that you might need to dispatch in order to get an effective refund. Again, your vat agent can help you to complete all necessary formalities.
Many eu countries have their own version of a vat invoice and also have different vat rates for various products or services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some form of vat refunds to avoid the issue of double taxation on goods and services. You simply can’t deduct the vat refund amount in your routine vat returns but will instead have to use the vat refund scheme for the 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 amount to an account in the country or directly arrange for the money to generally be received within your UK bank account by providing them the necessary details as well as your bank account number.
If you constantly have to import services or goods to the UK where vat was already paid you then should sign up for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat then you can accurately price your items and services while receiving a much needed financial injection in your business.