If you have already paid vat on your services or goods more than once and would like to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme to get back vat that might have already been paid earlier so as to reduce your costs as well as get respite from the issue of double taxation over your services or goods.
Although you won’t be allowed to deduct the vatnumbers amount of taxes straight from your next vat return, you will still be allowed to claim 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 usually have such procedures where vat amounts which have previously been paid can be reclaimed. If you’re a vat registered trader in the UK that doesn’t have vat registration in the country of origin you’ll be able to claim any vat paid in that country provided you meet a few other vat rules.
You may also claim vat paid in another eu country if you haven’t got relief through some other vat scheme. You will have to use 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 United Kingdom. On the other hand, since reclaiming rules might differ abroad, you might need the expertise of a specialist 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 a letter or authority to do so.
It is possible to go in for a vat reclaim no after 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 plan on reclaiming vat using your agent. You should use the hm vat refunds service that’s a part of the vat online services offered by the hmrc vat website so as to reduce time and effort. Once you submit the required online vat form you will be issued a web based reference number that may indicate that your request has been 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’ve sent your reclaiming request hmrc will be sending you 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 your documents are typically in proper order. In case further information is required from that eu country you’ll be able to expect your vat reclaim to be settled after around 8 months of your original application.
In order to avoid the situation of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that may be claimed by following proper procedures and using proper applications. You also 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.