If you have already paid vat on your services or goods again and want to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme to get back vat which may have already been paid earlier so as to lower your costs and even get respite from the problem of double taxation over your goods or services.
Although you won’t be permitted to deduct the VAT amount of taxes directly from your next vat return, you still be permitted to state that amount in the separate vat refund scheme. This scheme is available in the UK subject to certain conditions. Most eu countries that follow vat will often 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 nation of origin then you can claim any vat paid in the country provided you meet a few other vat rules.
You can also claim vat paid in another eu country if you haven’t got relief through any other vat scheme. You will have 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 United Kingdom. However, since 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 successfully extract vat refunds from 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 accomplish this.
It is possible to go for a vat reclaim no later than 9 months within a year or so after you have paid the vat amount. You will first need to register your organization name and also your agent?s name too in the event you plan on reclaiming vat using your agent. You need to use the hm vat refunds service that is a part of the vat online services provided by the hmrc vat website in order to reduce time and effort. As soon as you submit the necessary online vat form you will be issued a web based 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 to your vat refund request. Once you’ve sent your reclaiming request hmrc will send you 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 case any further information is required from that eu country then you can expect your vat reclaim to be settled after around 8 months of your original application.
To prevent the problem of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that can be claimed by using proper procedures and using proper applications. You too 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.