In case you operate a trading business in the UK or other EU country and also have imported goods or services that has already paid vat in the nation of origin then you can claim vat back after vat registration. However,
you should study many different rules necessary for vat refund before you stake your claim for a vat reclaim.
Although tourists and certain other individuals can claim VAT or value added tax once they return back in order to their own country by simply showing the original vat invoice displaying the vat rate and vat amount, businesses have to furnish a lot more details before they can be eligible for a reimbursement. If you too have imported goods or services originating from a member EU country to the UK and also have already paid vat in that country then in order to avoid double taxation and lower your costs, you should surely apply for a vat refund. Although you might not be in a position to directly deduct the vat amount in your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can use the vat online services provided by HM customs and excise customs vat or go to the hmrc vat website to register your business first. If you’re not internet savvy or have trouble in comprehending vat rules then it could well be better to appoint a vat agent that provides all vat services including applying for refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims in your stead. You can also appoint different vat agents in different countries and register them separately, particularly if you import services and goods from different countries.
You need to make sure that you retain all original documents of vat paid in the original country before you claim vat back. You should fill the vat form for vat reclaim before 9 months within the next calendar year after you have paid the original vat amount in order to be eligible for a a vat refund. However, this time period varies in various countries. You need to to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you attach the faktura vat or tax invoice which is written in Polish language before it is sent for a reclaim. When this happens, a local vat agent would be in a very better position to understand the precise laws of each country.
After you have submitted all relevant documents to claim vat back, then you should receive the vat refund within the designated time period specified by the specific country. In great britan the timeframe is usually around 4 months if your own claim is processed and approved without the requirement for additional proof. You can receive your vat refund in a EU country that you desire or perhaps the UK provided you have a valid banking account within the desired country. However, remember that to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires services or goods which have already paid vat in the nation of origin before reaching the shores of your country in which you have to pay vat again, you’ll be able to claim back the extra vat paid on them. A vat agent that is well versed in international and national vat rules will be able to help you towards claiming vat back without difficulty. If you have just started trading internationally then you can claim vat back after vat registration and lower your costs to a great extent.