If you have already paid VAT inside a foreign eu country and have to pay extra for exactly the same again in your own country then you can reclaim vat to lower the load of double taxation. The whole procedure can be completed online, particularly if your vat registered business is located in the UK in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat easy.
If you have purchased goods from another vat enabled country in the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you don’t have a vat registered business and still have already paid vat in the country of origin then you can certainly and must claim that vat back. This can https://vatcontrol.com/vat not only reduce your product cost but also allow for vital funds to circulate back to your organization. Even though the vat reclaiming process typically takes between four to 8 months to finish, you can easily appoint a vat agent that’s an expert in eu vat and uk vat refund rules. This should help you to concentrate on your business while your agent attempts to reclaim vat as your representative by utilizing the online vat refund scheme.
Before you can post the first claim for vat, you will need to be a vat registered trader in the United Kingdom and will have to register for vat refund with the hmrc. You will have a maximum of 9 months following the end of the year or so to make your vat refund application. Since you can simply fill out the online vat form to reclaim any previously paid vat, you won’t need to fill out and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries might also insist upon looking at original invoices which you may have to dispatch to get a successful refund. Again, your vat agent can help you to complete all necessary formalities.
Many eu countries have their own version of a vat invoice and have different vat rates for various goods and services. For example, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some kind of vat refunds to avoid the issue of double taxation on goods and services. You simply can’t deduct the vat refund amount within your routine vat returns but will instead have to use the vat refund scheme for the same. If you have made a vat reclaim in a eu country then you’ll usually receive the refund amount in their currency. You can either transfer the refund figure to a merchant account in the country or directly arrange for the money to generally be received in your UK banking account by giving them the necessary details including your bank account number.
If you constantly have to import services or goods to the UK where vat has already been paid you then should register for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat you’ll be able to accurately price your products and services while receiving a much needed financial injection in your business.