When you have already paid vat on your services or goods more than once and would like to get the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme for getting back vat which may have already been paid earlier so as to lower your costs as well as get relief from the issue of double taxation over your services or goods.
Although you will not be permitted to deduct the VAT amount of taxes directly from the next vat return, you will still be allowed to state that amount in a 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 may be reclaimed. If you are a vat registered trader in the UK that does not have vat registration in the nation 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 have not got relief through any other vat scheme. You will have to use 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. However, since the reclaiming rules might differ in other countries, you’ll need the expertise of an expert vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act in your stead once you let them have a power of attorney or a letter or authority to accomplish this.
You can go in for a vat reclaim no later than 9 months within a calendar year after you have 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 need to use the hm vat refunds service that’s a part of the vat online services offered by the hmrc vat website so as to save on time and energy. As soon as 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 request a scanned vat invoice to be attached to your vat refund request. Once you’ve sent your reclaiming request hmrc will be sending you a confirmation regarding the same within 15 days even though the concerned eu country will normally offer you a vat refund within 4 months, if all 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 your original application.
To prevent the problem of double taxation, most eu countries that have adopted vat such as the UK offer vat refunds that can be claimed by using proper procedures and using proper applications. You also can claim back vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country by using the vat refund scheme.