If you have already paid vat on the services or goods again and want 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 already have been paid earlier so as to reduce your costs as well as get relief from the problem of double taxation over your services or goods.
While you will not be allowed to deduct the VAT amount of taxes directly from the next vat return, you will still be allowed 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 usually have such procedures where vat amounts that have previously been paid may be reclaimed. If you’re a vat registered trader in the UK that does not 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 have not got relief through any other vat scheme. You will need 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. On the other hand, since the reclaiming rules might differ in other countries, you’ll need the expertise of an expert vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act in your stead as soon as you let them have a power of attorney or even a letter or authority to do so.
It is possible to go for a vat reclaim no later than 9 months within a year or so after you’ve paid the vat amount. You may first have to register your business name and also your agent?s name too in the event you plan on reclaiming vat using 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 in order to save on time and effort. Once you submit the required online vat form you’ll be issued an online 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 generally be attached to 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 usually provide you with a vat refund within 4 months, if all of 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 get settled after around 8 months of your original application.
In order to avoid the situation of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You too can reclaim vat paid in any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.