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 to get back vat which may have already been paid earlier in order to lower your costs as well as get relief 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 the next vat return, you will still be allowed to claim 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 already been paid may 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 the country provided you meet some other vat rules.
You can also claim vat paid in another eu country if you haven’t got relief through any other vat scheme. You will need 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 United Kingdom. However, since reclaiming rules might differ abroad, you’ll need the services 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 let them have a power of attorney or a letter or authority to accomplish this.
It is possible to go for a vat reclaim no later than 9 months in a year or so after you’ve paid the vat amount. You may first have to register your organization name and also your agent?s name too in the event you intend on reclaiming vat through your agent. You should use the hm vat refunds service that’s a part of the vat online services provided by the hmrc vat website so as to reduce time and effort. As soon as you submit the required online vat form you will be issued an online reference number that will indicate that your request has been 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 generally be attached with your vat refund request. Once you have sent your reclaiming request hmrc will be sending you a confirmation regarding the same within 15 days while the concerned eu country will usually provide you with a vat refund within 4 months, if all of your documents are typically 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 the original application.
In order to avoid the problem of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that may be claimed by using proper procedures and ultizing proper applications. You too 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.