When you have already paid vat on your goods or services again and want to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme for getting back vat that might already have been paid earlier so as to lower your costs and even get respite from the problem of double taxation over your services or goods.
While you won’t be permitted to deduct the VAT tax amount directly from the next vat return, you still be allowed to claim that amount in a separate vat refund scheme. This scheme is available in the UK governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have previously been paid can be reclaimed. If you’re a vat registered trader in the United Kingdom that does not have vat registration in the nation of origin then you can claim any vat paid in that country provided you meet a few other vat rules.
You can also claim vat paid in another eu country if you haven’t got relief through some other vat scheme. You will need to make use of 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 UK. On the other hand, since reclaiming rules might differ abroad, you might need the services of a specialist 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 on your behalf 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 in a year or so after you have paid the vat amount. You will first have to register your business name and also your agent?s name too in case you intend on reclaiming vat using your agent. You need to use the hm vat refunds service that’s 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 will be issued an online reference number that may indicate that the request has been received by the vat refund department.
While 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 have sent your reclaiming request hmrc will be sending a confirmation about the same within 15 days while 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 further details are required from that eu country then you can expect your vat reclaim to be settled after around 8 months of your original application.
To prevent the problem of double taxation, most eu countries which have adopted vat including 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 any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.