If you operate a trading business in the UK or any other EU country and also have imported services or goods that has already paid vat in the country of origin then you can claim vat back after vat registration. However, you should study all different rules necessary for vat refund before you decide to stake your claim for any vat reclaim.
Although tourists and certain other people can claim VAT or value added tax when they return back to their country by simply showing the original vat invoice displaying the vat rate and vat amount, businesses have to furnish a lot more details before they can be eligible for a a refund. In the event you too have imported services or goods from a vatcontrol member EU country to the UK and have already paid vat in the country then in order to avoid double taxation and reduce your costs, you ought to surely apply for a vat refund. Even though you might not be able to directly deduct the vat amount in your next vat return, you may surely claim vat back from your country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly use the vat online services offered by HM customs and excise customs vat or go to the hmrc vat web site to register your organization first. If you are not internet savvy or have trouble in comprehending vat rules then it would be better to appoint a vat agent that delivers all vat services including obtaining refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims in your stead. You can also appoint different vat agents in different countries and register them separately, particularly if you import goods and services from different countries.
You should make sure that you retain all original documents of vat paid in the original country before you claim vat back. You should fill up the vat form for vat reclaim before 9 months within the next twelve months once you have paid the initial vat amount so that you can qualify for a vat refund. However, this time period varies in different countries. You might also need to climb over language barriers between various EU countries while submitting your tax documents. For instance, Poland stipulates that you attach the faktura vat or tax invoice that is written in Polish language before it is sent for a reclaim. In such a case, a local vat agent will be in a stronger position to comprehend the specific laws of each country.
After you have submitted all relevant documents to claim vat back, then you should receive the vat refund within the designated time frame specified by the exact country. In the UK the timeframe is usually around 4 months if your claim is processed and approved without any need for additional proof. You may receive your vat refund in any EU country that you desire or even in the UK provided you have a valid bank account in the desired country. However, remember that to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of the country.
If your business requires goods or services that have already paid vat in the nation of origin before reaching the shores of one’s country in which you have to pay vat again, you’ll be able to claim back the excess vat paid on them. A vat agent that is amply trained in international and national vat rules will be able to guide you towards claiming vat back with ease. If you have just started trading internationally you’ll be able to claim vat back after vat registration and reduce your costs to a great extent.