When you have already paid vat on the goods or services again and want to get the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme to get back vat which may have already been paid earlier so as to lower your costs as well as get respite from the issue of double taxation over your goods or services.
While you won’t be permitted to deduct the VAT tax amount straight from your next vat return, you will still be permitted to claim that amount in the separate vat refund scheme. This scheme is available in the United Kingdom subject to certain terms and conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have already been paid can be reclaimed. If you’re a vat registered trader in the United Kingdom that doesn’t have vat registration in the country of origin then you can claim any vat paid in that country provided you meet a few other vat rules.
You may also claim vat paid in another eu country if you have not got relief through any other vat scheme. You will have to make use of a standard vat reclaiming form from the HM revenue and customs or hmrc vat website that looks after the customs, excise and vat department in the UK. However, 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 in your stead once you provide them with a power of attorney or even a letter or authority to do so.
It is possible to go for a vat reclaim no later than 9 months within a year or so after you’ve paid the vat amount. You will first have to register your organization name and your agent?s name too in case you plan on reclaiming vat through your agent. You need to use the hm vat refunds service that is a part of the vat online services offered by the hmrc vat website in order to save on time and effort. Once you submit the necessary 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.
While you will not need to send any paper documents, certain eu countries might request a scanned vat invoice to be attached with your vat refund request. Once you’ve sent your reclaiming request hmrc will send you a confirmation about 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 in proper order. In the event further details are required from that eu country then you can expect your vat reclaim to get settled after around 8 months of the original application.
To prevent the problem of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that may be claimed by using proper procedures and ultizing proper applications. You too can claim back vat paid in any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.