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 which may have already been paid earlier so as to reduce your costs as well as get respite from the problem of double taxation over your services or goods.
Although you will not be permitted to deduct the VAT amount of taxes directly from your next vat return, you still be allowed to state that amount in a separate vat refund scheme. This scheme is available in the UK governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have already been paid can be reclaimed. If you’re a vat registered trader in the United Kingdom that does not have vat registration in the country of origin then you can claim any vat paid in the country provided you meet some 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 need to use 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 expertise 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 on your behalf as soon as you provide them with a power of attorney or even a letter or authority to do so.
You can go in for a vat reclaim no after 9 months within a year or so after you have paid the vat amount. You may first need to register your organization name and your agent?s name too in case you intend on reclaiming vat using your agent. You need to use the hm vat refunds service that’s a part of the vat online services offered by the hmrc vat website in order to reduce time and effort. Once you submit the required online vat form you will be issued an online reference number that may indicate that your request is 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 to your vat refund request. Once you have sent your reclaiming request hmrc will be sending you a confirmation regarding the same within 15 days while the concerned eu country will usually offer you a vat refund within 4 months, if all your documents are typically in proper order. In case further information is required from that eu country you’ll be able to 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 that have adopted vat including the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You also can claim back 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.