If you have already paid vat on the services or goods again and want to get the original amount back then while reclaiming vat ensure proper procedures are followed. You may use the vat refund scheme to get back vat which may already have been paid earlier in order to reduce your costs and even get relief from the problem of double taxation over your services or goods.
While you won’t be permitted to deduct the VAT amount of taxes straight from your next vat return, you still be allowed to state that amount in the separate vat refund scheme. This scheme is available in the United Kingdom governed by certain conditions. Most eu countries that follow vat usually have such procedures where vat amounts which have previously been paid may be reclaimed. If you’re a vat registered trader in the United Kingdom that doesn’t 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 make use of 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. On the other hand, 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 from the relevant country. Your agent can act in your stead as soon as you let them have a power of attorney or a letter or authority to accomplish this.
It is possible to go for a vat reclaim no after 9 months within a year or so after you have paid the vat amount. You will first need to register your organization name and also your agent?s name too in the event you plan on reclaiming vat through your agent. You need to use the hm vat refunds service that is a part of the vat online services offered by the hmrc vat website in order to reduce time and effort. As soon as you submit the required online vat form you’ll be issued an online reference number that will indicate that your request has been 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 send you a confirmation about the same within 15 days while the concerned eu country will usually offer you a vat refund within 4 months, if all of your documents are typically in proper order. In the event any further information is required from that eu country then you can expect your vat reclaim to be settled after around 8 months of your original application.
To prevent the problem of double taxation, most eu countries that have adopted vat including the UK offer vat refunds that may be claimed by following proper procedures and ultizing proper applications. You also can reclaim 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.