If 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 may use the vat refund scheme to get back vat that might have already been paid earlier so as to reduce your costs as well as get relief from the problem of double taxation over your services or goods.
Although you won’t be permitted to deduct the VAT tax amount directly from the next vat return, you will still be permitted to claim that amount in the separate vat refund scheme. This scheme is available in the UK subject to certain terms and conditions. Most eu countries that follow vat will often have such procedures where vat amounts which have already been paid may be reclaimed. If you’re a vat registered trader in the UK that doesn’t have vat registration in the country of origin you’ll be able to claim any vat paid in that 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 some other vat scheme. You will have to make use of 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 services of an expert 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 even a letter or authority to accomplish this.
It is possible to go for a vat reclaim no after 9 months in a year or so after you have 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 so as to reduce time and effort. As soon as you submit the required online vat form you’ll be issued an online reference number that may indicate that the request has been received by the vat refund department.
While you will not need to send any paper documents, certain eu countries might ask for a scanned vat invoice to be attached to your vat refund request. Once you have sent your reclaiming request hmrc will send you a confirmation regarding the same within 15 days even though 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 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.
In order to avoid the problem of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that may be claimed by using proper procedures and using proper applications. You also can reclaim 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.