If you have already paid VAT in a foreign eu country and also have to pay for exactly the same again in your own country then you can reclaim vat to reduce the burden of double taxation. The whole procedure can be completed online, especially if your vat registered business is situated in the UK in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat easy.
In case you have purchased goods from another vat enabled country in the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you don’t have a vat registered business and still have already paid vat in the country of origin then you can and must claim that vat back. This can not only reduce your product cost but also allow for vital funds to flow back to your business. Although the vat reclaiming process typically takes between four to 8 months to finish, you can easily appoint a vat agent vatnumbers that’s an expert in eu vat and uk vat refund rules. This should help you to concentrate on your organization while your agent tries to reclaim vat as your representative by using the online vat refund scheme.
Before you post your first claim for vat, you will need to become a vat registered trader in the United Kingdom and will have to register for vat refund with the hmrc. You will have a maximum of 9 months following the end of the year or so to make your vat refund application. Since you can easily fill out the web based vat form to reclaim any previously paid vat, you won’t need to complete and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries may also insist on taking a look at original invoices which you may need to dispatch to get a successful refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own version of the vat invoice and also have different vat rates for a number of goods and services. For example, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some kind of vat refunds to avoid the issue of double taxation on goods and services. You cannot deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the same. In case you have made a vat reclaim within a eu country then you will usually get the refund amount in their currency. You can either transfer the refund amount to an account in the country or directly arrange for the money to generally be received within your UK bank account by giving them the required details as well as your bank account number.
In case you constantly need to import services or goods into the UK where vat has already been paid then you should sign up for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat you’ll be able to accurately price your products and services while getting a necessary financial injection in your business.