When you have already paid vat on the services or goods 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 lower your costs as well as get respite from the issue of double taxation over your goods or services.
While you will not be permitted to deduct the VAT tax amount straight from the next vat return, you still be allowed to state that amount in the separate vat refund scheme. This scheme is available in the United Kingdom governed by certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts that have already been paid can be reclaimed. If you are a vat registered trader in the United Kingdom that does not have vat registration in the nation of origin you’ll be able to claim any vat paid in that country provided you meet some other vat rules.
You may also claim vat paid in another eu country if you have not got relief through some other vat scheme. You will have to use 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 reclaiming rules might differ abroad, you might need the expertise of a specialist vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds from the relevant country. Your agent can act on your behalf once you let them have a power of attorney or a letter or authority to accomplish this.
It is possible to go in for a vat reclaim no after 9 months in a year or so after you’ve paid the vat amount. You may first need to register your organization name and your agent?s name too in case you plan on reclaiming vat through your agent. You need to use the hm vat refunds service that’s a part of the vat online services offered by the hmrc vat website so as to reduce time and energy. As soon as you submit the necessary online vat form you will be issued a web based reference number that may 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 be sending you 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 your documents are typically in proper order. In the event any further details are required from that eu country then you can expect your vat reclaim to be settled after around 8 months of the original application.
In order to avoid the situation of double taxation, most eu countries which have adopted vat including the UK offer vat refunds that can be claimed by following proper procedures and using proper applications. You too can reclaim 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.