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 may use the vat refund scheme for getting back vat that might already have been paid earlier so as to reduce your costs and even get respite from the problem of double taxation over your services or goods.
Although you won’t be permitted to deduct the VAT tax amount directly from the next vat return, you still be permitted to state that amount in a separate vat refund scheme. This scheme is available in the UK subject to 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’re a vat registered trader in the United Kingdom that does not have vat registration in the nation of origin you’ll be able to claim any vat paid in that country provided you meet a few other vat rules.
You can also claim vat paid in another eu country if you have not 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. However, since reclaiming rules might differ abroad, you might need the expertise of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds in the relevant country. Your agent can act in your stead once you let them have a power of attorney or even a letter or authority to accomplish this.
It is possible to go for a vat reclaim no after 9 months in 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 offered by the hmrc vat website so as to reduce time and energy. Once you submit the required online vat form you’ll be issued an online reference number that may indicate that the request has been received by the vat refund department.
Although 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 be sending you a confirmation regarding the same within 15 days while the concerned eu country will usually offer you a vat refund within 4 months, if all your documents are in proper order. In the event any further information is required from that eu country you’ll be able to expect your vat reclaim to be settled after around 8 months of the original application.
In order to avoid the situation of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that can be claimed by following proper procedures and using proper applications. You too 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.