In case you operate a trading business in the UK or other EU country and also have imported goods or services that has already paid vat in the country of origin you’ll be able to claim vat back after vat registration. However, you should study all different rules required for vat refund before you decide to stake your claim for a vat reclaim.
Although tourists and certain other individuals can claim VAT or vat once they return back to their country by simply showing the original vat invoice displaying the vat rate and vat amount, businesses have to furnish a lot more details before they are able to qualify for reimbursement. In the event you too have imported services or goods vat registration number from a member EU country into the UK and have already paid vat in the country then to prevent double taxation and lower your costs, you ought to surely apply for a vat refund. Even though you might not be in a position to directly deduct the vat amount as part of your next vat return, you can surely claim vat back from your country of origin provided you follow their vat rules.
If you are not vat registered then you can certainly utilize the vat online services offered by HM customs and excise customs vat or go to the hmrc vat website to register your business first. If you’re not internet savvy or have trouble in comprehending vat rules then it could well be better to appoint a vat agent that provides all vat services including applying for refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims on your behalf. You can also appoint different vat agents in different countries and register them separately, especially if you import goods and services from different countries.
You need to ensure that you retain all original documents of vat paid in the original country before you can claim vat back. You should fill up the vat form for vat reclaim before 9 months in the next twelve months after you have paid the original vat amount so that you can qualify for a vat refund. However, this time around period varies in various countries. You need to to climb over language barriers between various EU countries while submitting your tax documents. For instance, Poland stipulates that you just attach the faktura vat or tax invoice which is written in Polish language before it’s sent for a reclaim. In such a case, the local vat agent would be in a stronger position to understand the specific laws of each country.
After you have submitted all relevant documents to claim vat back, then you should receive the vat refund in the designated time period specified by the exact country. In great britan the time period is usually around 4 months when your claim is processed and approved without any need for additional proof. You may receive your vat refund in a EU country that you desire or perhaps the UK provided you have a valid bank account in the desired country. However, remember that to submit proper documentation since any rejected vat claim will usually be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires goods or services which have already paid vat in the country of origin before reaching the shores of your country in which you need to pay vat again, you’ll be able to reclaim the excess vat paid on them. A vat agent that is well versed in international and national vat rules should be able to help you towards claiming vat back without difficulty. If you have just started trading internationally then you can claim vat back after vat registration and lower your costs to a great extent.