In case you operate a trading business in the UK or any other EU country and also have imported goods or services which has already paid vat in the nation of origin then you can claim vat back after vat registration. However,
you should study many different rules required for vat refund before you decide to stake your claim for a vat reclaim.
Although tourists and certain other people can claim VAT or vat once they go back to their country by simply showing the initial vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they are able to qualify for a refund. If you too have imported services or goods from a member EU country to the UK and have already paid vat in that country then in order to avoid double taxation and reduce your costs, you should surely apply for a vat refund. Although you might not be in a position to directly deduct the vat amount as part of your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can use the vat online services provided by HM customs and excise customs vat or go to the hmrc vat web site to register your business first. If you are not internet savvy or have trouble in comprehending vat rules 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 on your behalf. You may also appoint different vat agents in different countries and register them separately, particularly if you import services and goods from different countries.
You should make sure that you retain all original documents of vat paid within the original country before you can claim vat back. You should fill the vat form for vat reclaim before 9 months in the next calendar year once you have paid the original vat amount in order to be eligible for a a vat refund. However, this time period varies in different countries. You need to to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you just attach the faktura vat or tax invoice which is coded in Polish language before it is sent for any reclaim. In such a case, the local vat agent will be in a very stronger position to understand the precise laws of each country.
After you have submitted all relevant documents to assert vat back, then you ought to get the vat refund within the designated time period specified by the specific country. In great britan the timeframe is usually around 4 months if your own claim is processed and approved without the need for additional proof. You may receive your vat refund in a EU country that you desire or even in the UK provided you’ve got a valid bank account in the desired country. However, you should remember 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 that country.
If your business requires goods or services that have already paid vat in the country of origin before reaching the shores of your country in which you have to pay vat again, then you can claim back the excess vat paid on them. A vat agent that is well versed in international and national vat rules should be able to help 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 lower your costs to some large degree.