In case you have already paid VAT in a foreign eu country and also have to pay for the same again in your own country then you can reclaim vat to reduce the burden of double taxation. The entire procedure can be completed online, particularly if your vat registered organization is situated in the United Kingdom in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat vatnumbers an easy process.
In case you have purchased goods from another vat enabled country in the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you do not 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 will not just reduce your product cost but also allow for vital funds to flow back into your business. Even though the vat reclaiming process usually takes between four to eight months to finish, you can simply appoint a vat agent that is an expert in eu vat and uk vat refund rules. This will help you to concentrate on your business while your agent attempts to reclaim vat on your behalf by using the online vat refund scheme.
Before you post your first claim for vat, you will need to become a vat registered trader in the United Kingdom and will also have to sign up for vat refund with the hmrc. You will have a maximum of 9 months after the end of the calendar year to make your vat refund application. As you can easily fill out the online vat form to reclaim any previously paid vat, you won’t need to complete 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 in order to get a successful refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own own version of a vat invoice and also 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 provide some form of vat refunds to prevent the issue of double taxation on products or services. You cannot deduct the vat refund amount in your routine vat returns but will instead have to use the vat refund scheme for the very 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 amount to an account in the country or directly arrange for the money to generally be received within your UK bank account by providing them the necessary details including your banking account number.
If you constantly have to import services or goods to the UK where vat has already been paid then you should register for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat then you can accurately price your products and services while getting a much needed financial injection in your business.
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