In case you have already paid VAT inside a foreign eu country and also have to pay for exactly the same again throughout your home country then you can reclaim vat to lower the burden of double check vat number taxation. The whole procedure can be completed online, particularly if your vat registered organization is located in the UK where the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme that makes reclaiming vat an easy process.
In case you have purchased goods from another vat enabled country within the European Union like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you don’t have a vat registered business and still have already paid vat in the country of origin then you can and must claim that vat back. This can not just reduce your product cost but also enable vital funds to flow back to your organization. Although the vat reclaiming process usually takes between four to 8 months to finish, you can easily appoint a vat agent that is an expert in eu vat and uk vat refund rules. This should help you to focus on your organization while your agent tries to reclaim vat as your representative by utilizing the online vat refund scheme.
Before you can post your first claim for vat, you will have to become a vat registered trader in the United Kingdom and will also have to sign up for vat refund with the hmrc. You’ll have maximum of 9 months after the end of the year or so for making your vat refund application. Since you can simply fill out the online vat form to reclaim any previously paid vat, you won’t have to fill out and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist upon taking a look at original invoices which you may have to dispatch to get a successful refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own version of the vat invoice and have different vat rates for a number of goods and 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 avoid the problem 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. In case you have made a vat reclaim in a eu country then you’ll usually get the refund amount in their currency. You can either transfer the refund amount to a merchant account in the country or directly arrange for the money to generally be received in your UK banking account by giving them the necessary details as well as your banking account number.
If you constantly have to import goods or services into the UK where vat has already been paid you then should register for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat you’ll be able to accurately price your items and services while getting a necessary financial injection in your business.