In case you operate a trading business in the united kingdom or other EU country and also have imported services or goods which has already paid vat in the country of origin you’ll be able to claim vat back after vat registration. However, it is important to study many different rules required for vat refund before you stake your claim for a vat reclaim.
Although tourists and certain other individuals can claim VAT or value added tax once they return back to their own country by simply showing the initial vat invoice displaying the vat rate and vat amount, businesses have to furnish many more details before they can qualify for a refund. In the event you too have imported services or goods from a vat control member EU country to the UK and have already paid vat in that country then in order to avoid double taxation and lower your costs, you should surely have 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 utilize the vat online services provided by HM customs and excise customs vat or visit the hmrc vat website to register your business first. If you’re not internet savvy or have trouble in comprehending vat rules then it would be better to appoint a vat agent that provides all vat services including applying for refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims in your stead. You can 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 should fill the vat form for vat reclaim before 9 months in the next calendar year once you have paid the initial vat amount in order to qualify for 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 example, Poland stipulates that you attach the faktura vat or tax invoice which is written in Polish language before it is sent for a reclaim. In such a case, a local vat agent would be in a very better position to understand the precise laws of each country.
After you have submitted all relevant documents to assert vat back, then you should get the vat refund within the designated time frame specified by the specific country. In great britan the timeframe is generally around 4 months if your claim is processed and approved without the need for additional proof. You can receive your vat refund in a EU country that you desire or perhaps britain provided you’ve got a valid bank account in the desired country. However, remember that to submit proper documentation since any rejected vat claim will usually 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 nation of origin before reaching the shores of one’s country where you have to pay vat again, then you can reclaim the excess vat paid on them. A vat agent that is amply trained in international and national vat rules will be able to help 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 lower your costs to a large degree.