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 to get back vat that might already have been paid earlier in order to reduce your costs and even get respite from the issue of double taxation over your goods or services.
While you will not be allowed to deduct the VAT tax amount straight from the next vat return, you will still be allowed 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 will often have such procedures where vat amounts which 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 the country provided you meet some other vat rules.
You may also claim vat paid in another eu country if you haven’t got relief through some other vat scheme. You will need to make use of 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 UK. However, since the reclaiming rules might differ abroad, you’ll need the services 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 in your stead once you provide them with a power of attorney or a letter or authority to do so.
You can go in 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 business name and also your agent?s name too in the event you intend on reclaiming vat through your agent. You should use the hm vat refunds service that is 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 is received by the vat refund department.
While you will not need to send any paper documents, certain eu countries might ask for a scanned vat invoice to be attached with your vat refund request. Once you have sent your reclaiming request hmrc will send you a confirmation regarding the same within 15 days even though the concerned eu country will normally provide you with a vat refund within 4 months, if all of your documents are in proper order. In case 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 situation 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 ultizing 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.