While reclaiming vat ensure proper procedures are followed
If you have already paid vat on the services or goods more than once and want 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 that might 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.
Although you won’t be allowed to deduct the VAT tax amount directly from the next vat return, you will still be permitted to claim that amount in a separate vat refund scheme. This scheme is available in the United Kingdom subject to certain terms and conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have already been paid may be reclaimed. If you are a vat registered trader in the UK 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 a few other vat rules.
You can 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. However, since the reclaiming rules might differ abroad, you’ll need the expertise of an expert vat agent well-versed in uk vat and eu vat rules to ensure that you extract vat refunds in the relevant country. Your agent can act on your behalf as soon as you provide them with a power of attorney or a letter or authority to do so.
You can go for a vat reclaim no after 9 months within a calendar year after you have paid the vat amount. You will first have 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 energy. 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 ask for a scanned vat invoice to generally be attached to your vat refund request. Once you have sent your reclaiming request hmrc will be sending 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 of your documents are 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.
To prevent the problem of double taxation, most eu countries that have adopted vat such as the UK offer vat refunds that may be claimed by following 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.