You can reclaim vat to reduce the burden of double taxation

In case you have already paid VAT in a foreign eu country and also have to pay extra for the same again in your own country then you can certainly reclaim vat to reduce the burden of double taxation. The whole procedure can be completed online, especially if your vat registered organization is situated in the United Kingdom in which the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme which makes reclaiming vat vatnumbers easy.

If you have purchased goods from another vat enabled country in 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 must claim that vat back. This will not only lower product cost but will also allow for vital funds to circulate back into your organization. Even though the vat reclaiming process usually takes between four to eight months to complete, you can simply appoint a vat agent that’s a specialist in eu vat and uk vat refund rules. This should help you to concentrate on your organization 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 become a vat registered trader in the UK and will have to register for vat refund with the hmrc. You will have a maximum of 9 months after the end of the calendar year for making your vat refund application. As you can simply fill out the online vat form to reclaim any previously paid vat, you won’t have 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 taking a look at original invoices which you may need to dispatch to get an effective refund. Again, your vat agent can help you to complete all necessary formalities.

Many eu countries have their own version of a vat invoice and have different vat rates for a number of goods and services. For instance, 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 prevent the problem of double taxation on products or services. You cannot deduct the vat refund amount in your routine vat returns but will instead have 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 get 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 be received within your UK banking account by giving them the necessary details as well as your bank account number.

In case you constantly have to import services or goods into the UK where vat has already been paid you then should register for the vat refund scheme offered 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 necessary financial injection in your business.