In case you run a trading business in the united kingdom or any other EU country and also have imported services or goods that has already paid vat in the nation of origin then you can claim vat back after vat registration. However, it is important to study all different rules necessary for vat refund before you stake your claim for any vat reclaim.
Although tourists and certain other people can claim VAT or value added tax when they return back in order to their own country by simply showing the initial vat invoice displaying the vat rate and vat amount, businesses have to furnish a lot more details before they are able to be eligible for a vat validation reimbursement. In the event you too have imported services or goods originating from a member EU country to the UK and have already paid vat in the country then in order to avoid double taxation and reduce 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 can surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly use the vat online services provided by HM customs and excise customs vat or go to the hmrc vat web site to register your business 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 delivers all vat services including obtaining refunds and handling vat returns. Now you can authorize your vat agent to submit your vat claims in your stead. 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 need to ensure that you retain all original documents of vat paid within the original country before you claim vat back. You should fill up the vat form for vat reclaim before 9 months in the next calendar year once you have paid the original vat amount in order to be eligible for a a vat refund. However, this time period varies in different countries. You need to to climb over language barriers between various EU countries while submitting your tax documents. For instance, Poland stipulates that you just attach the faktura vat or tax invoice that is written in Polish language before it’s sent for a reclaim. When this happens, the local vat agent would be in a very better position to understand the specific laws for each country.
Once you have submitted all relevant documents to claim vat back, then you should get the vat refund within the designated time frame specified by the exact country. In the UK the time period is usually around 4 months when your own claim is processed and approved without any requirement for additional proof. You can receive your vat refund in a EU country that you desire or perhaps the UK provided you’ve got a valid banking account in the desired country. However, you should remember to submit proper documentation since any rejected vat claim will usually be looked with suspicion and handled strictly by the concerned vat authorities of the country.
If your business requires goods or services that have already paid vat in the country of origin before reaching the shores of one’s country where you need to pay vat again, you’ll be able to claim back the excess vat paid on them. A vat agent that’s amply trained in international and national vat rules will be able to help you towards claiming vat back with ease. If you have just started trading internationally you’ll be able to claim vat back after vat registration and reduce your costs to a great extent.