When you have already paid vat on your goods or services more than once and would like to receive 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 lower your costs as well as get respite from the issue of double taxation over your services or goods.
While you will not be permitted to deduct the VAT amount of taxes straight from the next vat return, you still be allowed to state that amount in a separate vat refund scheme. This scheme is available in the United Kingdom governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have previously been paid may be reclaimed. If you are a vat registered trader in the UK 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 have 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 United Kingdom. However, since reclaiming rules might differ in other countries, you’ll need the expertise of a specialist vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds from the relevant country. Your agent can act on your behalf as soon as you provide them with a power of attorney or a letter or authority to do so.
It is possible to go in for a vat reclaim no after 9 months within a calendar year after you’ve paid the vat amount. You will first have to register your organization name and also your agent?s name too in case 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 offered by the hmrc vat website so as to save on time and effort. As soon as you submit the necessary online vat form you will be issued a web based reference number that may indicate that the 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 be attached with your vat refund request. Once you’ve sent your reclaiming request hmrc will send a confirmation about the same within 15 days while the concerned eu country will normally offer you a vat refund within 4 months, if all of your documents are typically in proper order. In the event further details are required from that eu country then you can expect your vat reclaim to be 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 such as the UK offer vat refunds that may be claimed by using proper procedures and using proper applications. You also can claim back vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.