If you have already paid VAT in a foreign eu country and also have to pay extra for exactly the same again in your own country then you can certainly reclaim vat to lower the load of double taxation. The entire process could be completed online, particularly if your vat registered business is situated 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 in the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you do not 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 will not only lower product cost but also allow for vital funds to flow back into your business. Even though the vat reclaiming process usually takes between four to 8 months to finish, you can simply appoint a vat agent www.vatnumbers.com that’s a specialist in eu vat and uk vat refund rules. This will help you to focus on your business while your agent attempts to reclaim vat as your representative by using 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 United Kingdom and will also need to sign up for vat refund with the hmrc. You will have a maximum of 9 months following the end of the year or so to make your vat refund application. Since you can simply fill out the online vat form to reclaim any previously paid vat, you will not 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 might also insist upon looking at original invoices that you might need 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 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 do offer some kind of vat refunds to prevent the issue of double taxation on goods and services. You cannot deduct the vat refund amount within your routine vat returns but will instead need to use the vat refund scheme for the very same. In case you have made a vat reclaim within 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 in your UK banking account by giving them the necessary details including your banking account number.
In case you constantly need to import goods or services into the UK where vat has already been paid you then should sign up for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat then you can accurately price your products and services while getting a necessary financial injection in your business.