If you have already paid vat on your services or goods more than once and want to get the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme for getting back vat that might have already been paid earlier so as to reduce your costs and even get relief from the issue of double taxation over your services or goods.
While you won’t be permitted to deduct the VAT tax amount directly from the next vat return, you will still be allowed to claim that amount in the separate vat refund scheme. This scheme is available in the United Kingdom governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts that have previously been paid may be reclaimed. If you’re a vat registered trader in the United Kingdom that does not have vat registration in the country of origin you’ll be able to claim any vat paid in the country provided you meet some other vat rules.
You may also claim vat paid in another eu country if you haven’t got relief through any other vat scheme. You will have to use a standard vat reclaiming form through 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 might need the expertise of a specialist vat agent well-versed in uk vat and eu vat rules to successfully 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 accomplish this.
You can go for a vat reclaim no after 9 months within a year or so after you’ve paid the vat amount. You may first need to register your organization name and also your agent?s name too in the event you plan on reclaiming vat through your agent. You should use the hm vat refunds service that’s a part of the vat online services provided by the hmrc vat website in order to reduce time and effort. Once you submit the required online vat form you’ll be issued an online reference number that may indicate that the request is 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 you a confirmation about the same within 15 days while the concerned eu country will normally provide you with a vat refund within 4 months, if all of your documents are in proper order. In the event any further information is required from that eu country then you can expect your vat reclaim to get settled after around 8 months of your original application.
To prevent the problem of double taxation, most eu countries which have adopted vat such as the UK offer vat refunds that can be claimed by using proper procedures and ultizing proper applications. You too can claim back vat paid in almost any other eu country that follows vat by reclaiming vat back from that eu country when you use the vat refund scheme.