If you have already paid vat on the services or goods again and would like to get the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme to get back vat which may have already been paid earlier so as to lower your costs as well as get respite from the problem of double taxation over your services or goods.
While you won’t be allowed to deduct the VAT amount of taxes straight 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 United Kingdom governed by certain terms and conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have already been paid can be reclaimed. If you’re a vat registered trader in the United Kingdom that doesn’t have vat registration in the nation of origin then you can claim any vat paid in the country provided you meet some other vat rules.
You can also claim vat paid in another eu country if you have not got relief through some other vat scheme. You will need to make use of a standard vat reclaiming form through 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 expertise of an expert vat agent well-versed in uk vat and eu vat rules to successfully extract vat refunds from the relevant country. Your agent can act on your behalf as soon as you provide them with a power of attorney or even a letter or authority to do so.
You can go in for a vat reclaim no later than 9 months within a year or so after you have paid the vat amount. You may first have to register your organization name and your agent?s name too in case you intend on reclaiming vat through 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 so as to reduce time and energy. Once you submit the required online vat form you’ll be issued a web based reference number that will indicate that your request is received by the vat refund department.
Although you will not need to send any paper documents, certain eu countries might ask for a scanned vat invoice to be attached to your vat refund request. Once you have sent your reclaiming request hmrc will be sending a confirmation about the same within 15 days even though the concerned eu country will normally provide you with a vat refund within 4 months, if all of your documents are in proper order. In the event further details are required from that eu country you’ll be able to expect your vat reclaim to be settled after around 8 months of the original application.
To prevent the problem of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that may be claimed by using proper procedures and ultizing proper applications. You too can claim back vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.