In case you have already paid VAT in a foreign eu country and have to pay for the same again throughout your home country then you can certainly reclaim vat to reduce the burden of double taxation. The entire procedure can be completed online, especially if your vat registered business is situated in the United Kingdom where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat an easy process.
In case you have purchased goods from another vat enabled country in the European Union like Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you don’t have a vat registered business and still have already paid vat in the country of origin then you can and should claim that vat back. This can not only reduce your product cost but also allow for vital funds to circulate back into your organization. Even though the vat reclaiming process usually takes between four to 8 months to complete, you can easily appoint a vat agent vat numbers that is a specialist in eu vat and uk vat refund rules. This will help you to focus on your organization while your agent attempts to reclaim vat as your representative by utilizing the online vat refund scheme.
Before you can post your first claim for vat, you will need to become a vat registered trader in the UK and will have to sign up for vat refund with the hmrc. You will have a maximum of 9 months following the end of a calendar year to make your vat refund application. Since you can simply complete the web based vat form to reclaim any previously paid vat, you won’t need to complete and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries may also insist upon taking a look at original invoices that you might have to dispatch in order to get a successful refund. Again, your vat agent can help you to complete all necessary formalities.
Many eu countries have their own own version of the vat invoice and have different vat rates for various products or services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some kind of vat refunds to prevent the issue of double taxation on goods and services. You simply can’t deduct the vat refund amount within your routine vat returns but will instead have to use the vat refund scheme for the same. If you have made a vat reclaim in a eu country then you’ll usually receive the refund amount in their currency. You may either transfer the refund figure to an account in that country or directly arrange for the money to generally be received within your UK bank account by giving them the required details including your banking account number.
In case you constantly have to import goods or services to the UK where vat was already paid you then should sign up for the vat refund scheme provided by the hmrc vat department. As soon as you successfully reclaim vat you’ll be able to accurately price your products and services while receiving a necessary financial injection in your business.