If you have already paid VAT in a foreign eu country and also have to pay for the same again in your own country then you can certainly reclaim vat to lower the load of double https://checkvatnumber.com 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 which makes reclaiming vat an easy process.
In case you have purchased goods from another vat enabled country in the European Union such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you don’t have a vat registered business and still have already paid vat in the country of origin then you can certainly and must claim that vat back. This can not only lower product cost but will also allow for vital funds to flow back into your organization. Although the vat reclaiming process usually takes between four to 8 months to finish, you can simply appoint a vat agent that’s a specialist 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 your first claim for vat, you will have to become a vat registered trader in the United Kingdom and will need to sign up for vat refund with the hmrc. You will have a maximum of 9 months after the end of a calendar year for making your vat refund application. As you can simply complete the online vat form to reclaim any previously paid vat, you will not have to fill out and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries might also insist upon taking a look at original invoices which you may have to dispatch to get an effective 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 have different vat rates for various products or services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some kind of vat refunds to prevent the problem 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 same. If you have made a vat reclaim in a eu country then you’ll usually get the refund amount in their currency. You may either transfer the refund amount to an account in the country or directly arrange for the money to generally be received within your UK bank account by providing them the required details including your banking account number.
In case you constantly need to import services or goods into the UK where vat was already paid you then should register for the vat refund scheme provided by the hmrc vat department. As soon as you successfully reclaim vat then you can accurately price your items and services while getting a necessary financial injection in your business.