When you have already paid vat on the goods or services more than once and would like to receive the original amount back then while reclaiming vat ensure proper procedures are followed. You can use the vat refund scheme to get back vat which may already have been paid earlier so as to reduce your costs as well as get respite from the problem of double taxation over your services or goods.
Although you won’t be permitted to deduct the VAT amount of taxes directly from the next vat return, you will still be allowed to state that amount in the 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 which have previously been paid can be reclaimed. If you are a vat registered trader in the UK that does not have vat registration in the nation of origin you’ll be able to claim any vat paid in the 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 any other vat scheme. You will need 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 UK. On the other hand, since the reclaiming rules might differ abroad, you’ll need the expertise of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds in the relevant country. Your agent can act on your behalf once you provide them with a power of attorney or a letter or authority to do so.
It is possible to go in for a vat reclaim no after 9 months within a calendar year after you’ve paid the vat amount. You will first have to register your organization name and your agent?s name too in case you intend on reclaiming vat through your agent. You should use the hm vat refunds service that is a part of the vat online services provided by the hmrc vat website so as to reduce time and effort. As soon as you submit the necessary online vat form you will be issued a web based reference number that will indicate that the request has been received by the vat refund department.
Although you will not need to send any paper documents, certain eu countries might request a scanned vat invoice to be attached to your vat refund request. Once you’ve sent your reclaiming request hmrc will send a confirmation regarding the same within 15 days while the concerned eu country will usually provide you with a vat refund within 4 months, if all of your documents are typically in proper order. In case further details are required from that eu country then you can expect your vat reclaim to get settled after around 8 months of the original application.
In order to avoid the problem of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that may be claimed by following proper procedures and using proper applications. You also can claim back vat paid in any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.