In case you operate a trading business in the united kingdom or any other EU country and also have imported goods or services which has already paid vat in the country of origin then you can claim vat back after vat registration. However, you should study many different rules required for vat refund before you decide to stake your claim for any vat reclaim.
Although tourists and certain other individuals can claim VAT or value added tax when they go back to their country simply by showing the initial vat invoice displaying the vat rate and vat amount, businesses have to furnish many more details before they are able to qualify for a refund. In the event you too have imported goods or services originating from a vat control member EU country to the UK and have already paid vat in that country then to prevent double taxation and lower your costs, you should surely have a vat refund. Although you may not be able to directly deduct the vat amount as part of your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly use the vat online services provided by HM customs and excise customs vat or go to the hmrc vat web site to register your organization first. If you’re not internet savvy or have trouble in comprehending vat rules it could well be better to appoint a vat agent that delivers all vat services including applying for refunds and handling vat returns. Now you can authorize your vat agent to submit your vat claims in your stead. You can also appoint different vat agents in several countries and register them separately, particularly if you import services and goods from different countries.
You need to make sure that you retain all original documents of vat paid in the original country before you claim vat back. You should fill up the vat form for vat reclaim before 9 months within the next calendar year once you have paid the initial vat amount so that you can qualify for a vat refund. However, this time period varies in various countries. You might also need to climb over language barriers between various EU countries while submitting your tax documents. For instance, Poland stipulates that you attach the faktura vat or tax invoice which is written in Polish language before it is sent for any reclaim. In such a case, the local vat agent will be in a very better position to comprehend the precise laws for each country.
Once you have submitted all relevant documents to claim vat back, then you ought to receive the vat refund in the designated time period specified by the specific country. In great britan the time period is generally around 4 months if your claim is processed and approved without the requirement for additional proof. You can receive your vat refund in a EU country that you desire or even in the UK provided you have a valid banking account within the desired country. However, remember that to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of the country.
In case your business requires goods or services that have already paid vat in the nation of origin before reaching the shores of your country in which you need to pay vat again, then you can reclaim the excess vat paid on them. A vat agent that’s amply trained in international and national vat rules will be able to guide you towards claiming vat back without difficulty. If you have just started trading internationally you’ll be able to claim vat back after vat registration and lower your costs to some great extent.