When you have already paid vat on your services or goods again 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 for getting back vat which may have already been paid earlier in order 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 directly from your next vat return, you still be allowed to claim that amount in a separate vat refund scheme. This scheme is available in the UK subject to certain terms and conditions. Most eu countries that follow vat will often have such procedures where vat amounts which have already been paid can be reclaimed. If you’re a vat registered trader in the UK that does not 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 can also claim vat paid in another eu country if you have not got relief through any other vat scheme. You will have to make use of a standard vat reclaiming form from the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the UK. However, 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 in the relevant country. Your agent can act in your stead once you provide them with a power of attorney or a letter or authority to do so.
It is possible to go for a vat reclaim no after 9 months in a year or so after you’ve paid the vat amount. You may first have to register your organization name and your agent?s name too in the event you plan on reclaiming vat through your agent. You need to use the hm vat refunds service that is a part of the vat online services provided by the hmrc vat website so as to save on time and effort. Once you submit the necessary online vat form you’ll be issued a web based reference number that may indicate that the 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 generally be attached to your vat refund request. Once you’ve sent your reclaiming request hmrc will send a confirmation regarding 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 case any 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 problem of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You also can claim back vat paid in any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.