You can reclaim vat to lower the load of double taxation

If you have already paid VAT inside a foreign eu country and also have to pay for the same again throughout your home country then you can reclaim vat to reduce the load of double taxation. The entire procedure can be completed online, especially if your vat registered business is located in the United Kingdom where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat easy.

If you have purchased goods from another vat enabled country within the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you don’t have a vat registered business and have already paid vat in the country of origin then you can certainly and should claim that vat back. This can not just reduce your product cost but also enable vital funds to flow back to your business. Although the vat reclaiming process usually takes between four to eight months to complete, you can easily appoint a vat agent that is a specialist 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 post your first claim for vat, you will need to be a vat registered trader in the United Kingdom and will also need to register for vat refund with the hmrc. You will have a maximum of 9 months after the end of a year or so for making your vat refund application. Since you can simply complete 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 which you may have to dispatch to get an effective refund. Again, your vat agent can assist you to complete all necessary formalities.

Many eu countries have their own version of a vat invoice and also 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 products or services. You cannot deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the very same. If you have made a vat reclaim in a eu country then you will usually get the refund amount in their currency. You may either transfer the refund figure to a merchant account in the country or directly arrange for the money to be received in your UK banking account by providing them the necessary details including your banking account number.

In case you constantly have to import goods or services to the UK where vat was already paid you then should sign up for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat then you can accurately price your products and services while receiving a necessary financial injection in your business.