If you have already paid vat on the goods or services again 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 already have been paid earlier in order to lower your costs and even get relief from the problem of double taxation over your goods or services.
While you will not be allowed to deduct the VAT tax amount directly from your next vat return, you still be permitted to state that amount in a separate vat refund scheme. This scheme is available in the UK governed by certain terms and conditions. Most eu countries that follow vat will often have such procedures where vat amounts that have previously been paid may be reclaimed. If you’re a vat registered trader in the UK that does not have vat registration in the nation of origin then you can 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. However, 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 successfully extract vat refunds from the relevant country. Your agent can act in your stead as soon as you let them have a power of attorney or a letter or authority to accomplish this.
It is possible to go for a vat reclaim no later than 9 months within a calendar year after you have paid the vat amount. You may first have to register your organization name and also your agent?s name too in the event you plan on reclaiming vat using your agent. You need to use the hm vat refunds service that’s a part of the vat online services provided by the hmrc vat website so as to save on time and effort. Once you submit the necessary online vat form you’ll 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 have sent your reclaiming request hmrc will be sending 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 your documents are in proper order. In case any further details are required from that eu country you’ll be able to expect your vat reclaim to be 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 following proper procedures and using proper applications. You also 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.