In case you have already paid VAT in a foreign eu country and also have to pay extra for exactly the same again in your own country then you can reclaim vat to lower the load of double taxation. The whole process could be completed online, particularly if your vat registered business is situated in the United Kingdom where the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme which makes reclaiming vat an easy process.
In case you have purchased goods from another vat enabled country in the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not have a vat registered business and still have already paid vat in the country of origin then you can and must claim that vat back. This can vatcontrol.com/vat not just reduce your product cost but also enable vital funds to flow back into your organization. Although the vat reclaiming process usually takes between four to 8 months to complete, you can easily appoint a vat agent that’s an expert in eu vat and uk vat refund rules. This will help you to focus on your organization while your agent attempts to reclaim vat on your behalf by using the online vat refund scheme.
Before you can post the first claim for vat, you will have to become a vat registered trader in the UK and will have to sign up for vat refund with the hmrc. You will have a maximum of 9 months after the end of a year or so for making your vat refund application. As you can easily fill out the online vat form to reclaim any previously paid vat, you will not need to fill out and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist on taking a look at original invoices that you might need to dispatch to get a successful refund. Again, your vat agent can help you to complete all necessary formalities.
Many eu countries have their own own version of a vat invoice and also have different vat rates for a number of products or services. For example, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some form of vat refunds to prevent the issue of double taxation on goods and services. You cannot deduct the vat refund amount within your routine vat returns but will instead need to use the vat refund scheme for the same. In case you have made a vat reclaim in a eu country then you’ll usually receive the refund amount in their currency. You can either transfer the refund amount to an account in that country or directly arrange for the money to be received in your UK bank account by providing them the necessary details including your bank account number.
In case you constantly have to import services or goods into the UK where vat was already paid then you should register for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat you’ll be able to accurately price your products and services while getting a necessary financial injection in your business.