In case you operate a trading business in the united kingdom or any other EU country and have imported goods or services which has already paid vat in the country of origin you’ll be able to claim vat back after vat registration. However, you should study many different rules required for vat refund before you decide to stake your claim for a vat reclaim.
Although tourists and certain other individuals can claim VAT or value added tax when they go back in order to their country simply by showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they can qualify for vat validation reimbursement. In the event you too have imported services or goods originating from a member EU country into the UK and have already paid vat in the country then in order to avoid double taxation and lower your costs, you should surely apply for a vat refund. Although you might not be in a position to directly deduct the vat amount as part of your next vat return, you may surely claim vat back from your country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly utilize the vat online services provided by HM customs and excise customs vat or visit the hmrc vat website to register your organization first. If you are not internet savvy or have trouble in comprehending vat rules it could well be better to appoint a vat agent that provides all vat services including obtaining refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims on your behalf. You may also appoint different vat agents in different countries and register them separately, especially if you import goods and services from different countries.
You should make sure that you retain all original documents of vat paid in the original country before you claim vat back. You need to fill the vat form for vat reclaim before 9 months within the next calendar year once you have paid the initial vat amount in order to be eligible for a a vat refund. However, this time period varies in different countries. You might also need to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you attach the faktura vat or tax invoice that is written in Polish language before it is sent for a reclaim. When this happens, the local vat agent will be in a better position to comprehend the specific laws of each country.
After you have submitted all relevant documents to claim vat back, then you ought to get the vat refund within the designated time frame specified by the exact country. In the UK the time period is generally around 4 months if your claim is processed and approved without the need for additional proof. You may receive your vat refund in a EU country that you desire or even in the UK provided you have a valid bank account in the desired country. However, remember that to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires services or goods that have already paid vat in the country of origin before reaching the shores of one’s country where you have to pay vat again, then you can reclaim the extra vat paid on them. A vat agent that is amply trained in international and national vat rules will be able to guide you towards claiming vat back without difficulty. For those who have just started trading internationally then you can claim vat back after vat registration and reduce your costs to a large degree.