If you have already paid vat on the 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 may use the vat refund scheme for getting back vat which may already have been paid earlier so as to lower your costs as well as get relief from the issue of double taxation over your services or goods.
Although you won’t be allowed to deduct the vatcontrol.com/vat amount of taxes directly from your next vat return, you will still be permitted to state that amount in a separate vat refund scheme. This scheme is available in the United Kingdom subject to 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 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 have not got relief through any 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 United Kingdom. On the other hand, since the 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 ensure that you extract vat refunds from the relevant country. Your agent can act in your stead once you provide them with a power of attorney or even a letter or authority to accomplish this.
You can go in for a vat reclaim no later than 9 months within a calendar year 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 through 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 in order to save on time and effort. As soon as you submit the necessary online vat form you will be issued an online 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 request a scanned vat invoice to be attached with your vat refund request. Once you’ve sent your reclaiming request hmrc will send you a confirmation about the same within 15 days even though the concerned eu country will usually provide you with a vat refund within 4 months, if all your documents are in proper order. In the event any further details are required from that eu country then you can expect your vat reclaim to get settled after around 8 months of your original application.
To prevent the situation 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 ultizing proper applications. You also can reclaim vat paid in any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.