If you have already paid vat on the goods or services more than once 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 to get back vat that might have already been paid earlier in order to reduce your costs as well as get respite from the problem of double taxation over your goods or services.
Although you will not be permitted to deduct the VAT amount of taxes straight from the next vat return, you will still be permitted to claim that amount in the separate vat refund scheme. This scheme is available in the United Kingdom governed by certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts that have previously been paid can be reclaimed. If you are a vat registered trader in the United Kingdom that doesn’t have vat registration in the country of origin then you can claim any vat paid in that country provided you meet a few other vat rules.
You may also claim vat paid in another eu country if you haven’t got relief through any other vat scheme. You will need to use 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 UK. However, since the reclaiming rules might differ in other countries, you’ll need the services of an expert vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds from the relevant country. Your agent can act in your stead once you let them have a power of attorney or even a letter or authority to accomplish this.
It is possible to go for a vat reclaim no later than 9 months within a calendar year after you have paid the vat amount. You may first have to register your business name and also your agent?s name too in case you intend 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 energy. As soon as you submit the required online vat form you will be issued an online reference number that will 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 generally be attached with your vat refund request. Once you have sent your reclaiming request hmrc will send a confirmation about the same within 15 days even though the concerned eu country will usually offer you a vat refund within 4 months, if all your documents are in proper order. In case any further information is 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.
In order to avoid the problem of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You also can reclaim 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.