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 may use the vat refund scheme for getting back vat which may have already been paid earlier in order to reduce your costs as well as get respite from the problem of double taxation over your goods or services.
Although you will not be permitted to deduct the VAT tax amount directly from the next vat return, you will still be allowed to claim that amount in a 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 that have previously been paid can be reclaimed. If you are a vat registered trader in the UK that doesn’t have vat registration in the nation of origin you’ll be able to claim any vat paid in that country provided you meet a few 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 need 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 United Kingdom. On the other hand, since the reclaiming rules might differ abroad, you might need the services 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 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 later than 9 months in a year or so after you have paid the vat amount. You may first need to register your business 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 required online vat form you’ll be issued a web based reference number that will 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 with your vat refund request. Once you have sent your reclaiming request hmrc will be sending a confirmation about the same within 15 days even though 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 the original application.
In order to avoid 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 using proper applications. You too can claim back 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.