If you run a trading business in the UK or any other EU country and have imported goods or services that has already paid vat in the nation of origin then you can claim vat back after vat registration. However,
you should study all different rules necessary for vat refund before you decide to stake your claim for any vat reclaim.
Although tourists and certain other individuals can claim VAT or vat when they return back to their country by simply showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they are able to be eligible for a a refund. In the event you too have imported goods or services from a member EU country to the UK and also have already paid vat in that country then in order to avoid double taxation and reduce your costs, you ought to surely apply for a vat refund. Although you may not be able to directly deduct the vat amount in 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 utilize the vat online services provided by HM customs and excise customs vat or visit the hmrc vat website to register your organization 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 obtaining 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, particularly if you import services and goods from different countries.
You should 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 twelve months once you have paid the initial vat amount so that you can be eligible for a a vat refund. However, this time period varies in different 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 that is coded in Polish language before it is sent for a reclaim. In such a case, a local vat agent would be in a stronger position to comprehend the precise laws of each country.
Once you have submitted all relevant documents to assert vat back, then you should get the vat refund within the designated time period specified by the exact country. In great britan the timeframe is usually around 4 months if your claim is processed and approved without the need for additional proof. You can receive your vat refund in any EU country that you desire or perhaps the UK provided you’ve got a valid bank account within the desired country. However, you should remember 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 country of origin before reaching the shores of your country in which you need to pay vat again, you’ll be able to claim back the extra vat paid on them. A vat agent that’s well versed in international and national vat rules should be able to guide you towards claiming vat back with ease. If you have just started trading internationally you’ll be able to claim vat back after vat registration and lower your costs to a large degree.