If you have already paid vat on the services or goods more than once and want 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 that might have already been paid earlier in order to reduce your costs and even get respite from the problem of double taxation over your goods or services.
Although you will not be allowed to deduct the VAT tax amount directly from your next vat return, you will still be permitted to state that amount in the separate vat refund scheme. This scheme is available in the UK subject to certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts that have already been paid can be reclaimed. If you are a vat registered trader in the UK that does not have vat registration in the nation of origin then you can 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 some 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 United Kingdom. On the other hand, since reclaiming rules might differ abroad, you might need the services 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 on your behalf as soon as you provide them with a power of attorney or even a letter or authority to accomplish this.
It is possible to 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 case you plan on reclaiming vat using your agent. You need to use the hm vat refunds service that’s a part of the vat online services provided by the hmrc vat website in order to reduce time and energy. Once you submit the required online vat form you will be issued a web based reference number that will indicate that your request is received by the vat refund department.
Although you will not need to send any paper documents, certain eu countries might ask for a scanned vat invoice to generally be attached to your vat refund request. Once you have sent your reclaiming request hmrc will send you a confirmation about the same within 15 days while the concerned eu country will normally provide you with a vat refund within 4 months, if all of your documents are in proper order. In the event any further information is required from that eu country then you can expect your vat reclaim to get settled after around 8 months of the original application.
In order to avoid the situation of double taxation, most eu countries that have adopted vat such as the UK offer vat refunds that may be claimed by following proper procedures and ultizing proper applications. You too can reclaim vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.