When you have already paid vat on your goods or services 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 to get back vat that might already have been paid earlier in order to reduce your costs and even get respite from the problem of double taxation over your services or goods.
While you will not be permitted to deduct the vat numbers amount of taxes directly from your next vat return, you still be allowed to state that amount in a separate vat refund scheme. This scheme is available in the UK governed by 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 country of origin then you can 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 haven’t got relief through some 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 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 successfully extract vat refunds from the relevant country. Your agent can act on your behalf once you let them have a power of attorney or a letter or authority to accomplish this.
It is possible to go for a vat reclaim no after 9 months within a calendar year after you have paid the vat amount. You may first need to register your business name and your agent?s name too in case you intend on reclaiming vat using 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 reduce time and effort. Once you submit the necessary online vat form you will be issued a web based 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 with your vat refund request. Once you have sent your reclaiming request hmrc will send a confirmation regarding 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 case any further details are required from that eu country you’ll be able to 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 which have adopted vat including the UK offer vat refunds that can be claimed by using proper procedures and using 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 by using the vat refund scheme.