If you have already paid VAT inside a foreign eu country and have to pay for the same again throughout your home country then you can reclaim vat to lower the burden of double taxation. The entire process could be completed online, particularly if your vat registered organization is situated in the UK in which 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 within the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you don’t have a vat registered business and have already paid vat in the country of origin then you can certainly and must claim that vat back. This can not only reduce your product cost but will also allow for vital funds to circulate back to your organization. Although the vat reclaiming process typically takes between four to 8 months to finish, you can easily appoint a vat agent vatnumbers that is an expert 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 using the online vat refund scheme.
Before you can post the first claim for vat, you will need to be a vat registered trader in the United Kingdom and will also need to register for vat refund with the hmrc. You will have a maximum of 9 months following the end of a year or so for making your vat refund application. Since you can simply fill out the web based vat form to reclaim any previously paid vat, you will not need to fill out and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist upon looking at original invoices that you might have to dispatch 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 also have different vat rates for various products or services. For example, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some form 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 very same. If you have made a vat reclaim in a eu country then you will usually get the refund amount in their currency. You can either transfer the refund figure to a merchant account in that country or directly arrange for the money to generally be received within your UK bank account by giving them the necessary details as well as your banking account number.
If you constantly have to import services or goods into the UK where vat was already paid then you should sign up for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat you’ll be able to accurately price your items and services while receiving a much needed financial injection in your business.