In case you operate a trading business in the UK or other EU country and have imported services or goods which has already paid vat in the nation of origin you’ll be able to claim vat back after vat registration. However,
it is important to study many different rules necessary for vat refund before you decide to stake your claim for any vat reclaim.
Although tourists and certain other individuals can claim VAT or vat once they return back in order to their country simply by showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish a lot more details before they are able to be eligible for a reimbursement. If you too have imported goods or services originating from a member EU country into the UK and also have already paid vat in the country then to prevent double taxation and lower your costs, you should surely have a vat refund. Even though you might not be in a position to directly deduct the vat amount as part of your next vat return, you may surely claim vat back from your country of origin provided you follow their vat rules.
If you’re not vat registered then you can use the vat online services offered by HM customs and excise customs vat or go to the hmrc vat web site to register your business first. If you’re not internet savvy or have trouble in comprehending vat rules it would be better to appoint a vat agent that provides all vat services including obtaining refunds and handling vat returns. Now you can authorize your vat agent to submit your vat claims in your stead. You can also appoint different vat agents in different countries and register them separately, especially if you import goods and services from different countries.
You need to ensure that you retain all original documents of vat paid in the original country before you claim vat back. You should fill the vat form for vat reclaim before 9 months within the next twelve months once you have paid the original vat amount in order to qualify for a vat refund. However, this time around period varies in different countries. You might also need to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you just attach the faktura vat or tax invoice that is written in Polish language before it’s sent for any reclaim. In such a case, the local vat agent will be in a very better position to comprehend the specific laws of each country.
After you have submitted all relevant documents to claim vat back, then you ought to get the vat refund in the designated time period specified by the specific country. In great britan the time period is usually around 4 months when your own claim is processed and approved without any requirement for additional proof. You can receive your vat refund in a EU country that you desire or even in the UK provided you’ve got a valid banking account within the desired country. However, remember that to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of the country.
In case your business requires services or goods that have already paid vat in the country of origin before reaching the shores of your country in which you need to pay vat again, you’ll be able to reclaim the excess vat paid on them. A vat agent that is amply trained in international and national vat rules should be able to help you towards claiming vat back with ease. For those who have just started trading internationally then you can claim vat back after vat registration and lower your costs to some great extent.