If you run a trading business in the UK or any other EU country and have imported goods or services which has already paid vat in the country of origin you’ll be able to claim vat back after vat registration. However,
it is important to study all different rules required for vat refund before you stake your claim for any vat reclaim.
Although tourists and certain other individuals can claim VAT or value added tax when they go back to their own country simply by showing the initial vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they can qualify for reimbursement. If you too have imported services or goods from a member EU country to the UK and have already paid vat in the country then to prevent double taxation and lower your costs, you ought to surely have a vat refund. Even though you may not be in a position to directly deduct the vat amount in your next vat return, you can surely claim vat back from your country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly utilize the vat online services offered by HM customs and excise customs vat or visit the hmrc vat website to register your business first. If you are not internet savvy or have trouble in comprehending vat rules it could well be better to appoint a vat agent that provides all vat services including applying for refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims on your behalf. You may also appoint different vat agents in several countries and register them separately, particularly if you import services and goods from different countries.
You should make sure that you retain all original documents of vat paid in the original country before you can claim vat back. You need to fill up the vat form for vat reclaim before 9 months within the next twelve months after you have paid the initial vat amount so that you can be eligible for a a vat refund. However, this time period varies in different countries. You need to to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you attach the faktura vat or tax invoice which is coded in Polish language before it’s sent for a reclaim. When this happens, a local vat agent would be in a better position to comprehend the specific laws of each country.
After you have submitted all relevant documents to assert vat back, then you ought to receive the vat refund in the designated time period specified by the exact country. In the UK the timeframe is generally around 4 months if your own claim is processed and approved without any need for additional proof. You may receive your vat refund in a EU country that you desire or perhaps britain provided you have a valid banking account in the desired country. However, you should remember to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires services or goods which have already paid vat in the country of origin before reaching the shores of one’s country in which you have to pay vat again, then you can claim back the excess vat paid on them. A vat agent that’s well versed in international and national vat rules should be able to guide you towards claiming vat back without difficulty. If you have just started trading internationally then you can claim vat back after vat registration and reduce your costs to a great extent.