If you have already paid vat on your services or goods again and want 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 that might already have been paid earlier so as to lower your costs and even get respite from the issue of double taxation over your services or goods.
While you will not be allowed to deduct the VAT tax amount directly from your 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 usually have such procedures where vat amounts which have previously been paid can be reclaimed. If you’re a vat registered trader in the United Kingdom 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 some 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 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 the 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 ensure that you extract vat refunds in the relevant country. Your agent can act in your stead as soon as 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 after 9 months within a calendar year after you have paid the vat amount. You will first have to register your business name and your agent?s name too in case you intend 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 energy. Once you submit the necessary online vat form you’ll be issued an online reference number that will indicate that the request is received by the vat refund department.
While 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 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 further details are required from that eu country then you can 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 following proper procedures and using proper applications. You too can claim back 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.