You can reclaim vat to lower the load of double taxation

If you have already paid VAT in a foreign eu country and have to pay extra for exactly the same again throughout your home country then you can reclaim vat to lower the burden of double taxation. The whole procedure can be completed online, especially if your vat registered business is located in the UK in which the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme that makes reclaiming vat easy.

In case you have purchased goods from another vat enabled country in the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you do not have a vat registered business and still 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 circulate back into your business. Although the vat reclaiming process usually takes between four to 8 months to finish, you can simply appoint a vat agent that’s a specialist in eu vat and uk vat refund rules. This will help you to focus on your business while your agent tries to reclaim vat as your representative by utilizing the online vat refund scheme.

Before you post the first claim for vat, you will need to be a vat registered trader in the United Kingdom and will need to sign up for vat refund with the hmrc. You’ll have maximum of 9 months after the end of a year or so for making your vat refund application. Since you can simply complete the web based 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 over a stipulated amount. Some countries may also insist upon taking a look at original invoices that you might need to dispatch in order to get an effective 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 goods and services. For example, 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 issue of double taxation on goods and 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. In case you have made a vat reclaim within a eu country then you’ll usually receive the refund amount in their currency. You can either transfer the refund amount to a merchant account in that country or directly arrange for the money to generally be received within your UK bank account by giving them the required details as well as your banking account number.

In case you constantly have to import goods or services into the UK where vat was already paid then you should register 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 items and services while receiving a much needed financial injection in your business.