You can reclaim vat to reduce the burden of double taxation

In case you have already paid VAT inside a foreign eu country and also have to pay extra for exactly the same again throughout your home country then you can reclaim vat to lower the load of double taxation. The whole procedure can be completed online, especially if your vat registered organization is located in the UK where the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme that makes reclaiming vat easy.

If you have purchased goods from another vat enabled country within the European Union like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not have a vat registered business and have already paid vat in the country of origin then you can certainly and should claim that vat back. This can not only lower product cost but also enable vital funds to flow back to your organization. Even though the vat reclaiming process typically takes between four to eight months to complete, you can simply appoint a vat agent that is an expert in eu vat and uk vat refund rules. This should help you to concentrate on your business while your agent tries to reclaim vat on your behalf by utilizing the online vat refund scheme.

Before you can post the first claim for vat, you will need to be a vat registered trader in the UK and will need to register for vat refund with the hmrc. You will have a maximum of 9 months following the end of a year or so for making your vat refund application. Since you can simply complete the online vat form to reclaim any previously paid vat, you will not need to fill out and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist on taking a look at original invoices that you might have 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 own version of a vat invoice and have different vat rates for various goods and services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some kind of vat refunds to avoid the problem of double taxation on goods and services. You simply can’t deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the same. If you have made a vat reclaim in a eu country then you will usually receive the refund amount in their currency. You can either transfer the refund figure to a merchant account in the country or directly arrange for the money to be received in your UK banking account by giving them the required details as well as your banking account number.

If you constantly have to import services or goods into the UK where vat has already been paid you then should sign up for the vat refund scheme offered by the hmrc vat department. Once you successfully reclaim vat then you can accurately price your items and services while receiving a much needed financial injection in your business.