If you have already paid VAT inside a foreign eu country and also have to pay extra for the same again throughout your home country then you can certainly reclaim vat to lower the burden of double taxation. The whole procedure can be completed online, particularly if your vat registered organization is located in the UK where the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme which makes reclaiming vat an easy process.
If you have purchased goods from another vat enabled country within 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 will not just reduce your product cost but also allow for vital funds to flow back into your business. Even though the vat reclaiming process usually takes between four to 8 months to complete, you can easily appoint a vat agent vatnumbers that is an expert in eu vat and uk vat refund rules. This should help you to focus on your business while your agent tries to reclaim vat on your behalf by using the online vat refund scheme.
Before you post the first claim for vat, you will have to become a vat registered trader in the UK and will also 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 web based 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 over a stipulated amount. Some countries may also insist upon looking at original invoices which you may have to dispatch to get a successful 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 a number of products or services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some kind of vat refunds to avoid the problem of double taxation on products or services. You simply can’t 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’ll usually get the refund amount in their currency. You can either transfer the refund amount to an account in that country or directly arrange for the money to be received in your UK banking account by giving them the required details as well as your banking account number.
In case you constantly need to import services or goods into the UK where vat has already been paid then you should sign up for the vat refund scheme provided by the hmrc vat department. As soon as you successfully reclaim vat you’ll be able to accurately price your products and services while receiving a much needed financial injection in your business.