In case you operate a trading business in the united kingdom or any other EU country and have imported services or goods that has already paid vat in the country 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 decide to stake your claim for a vat reclaim.
Although tourists and certain other individuals can claim VAT or value added tax when they return back in order to their country simply by showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they can qualify for reimbursement. In the event you too have imported services or goods vatregistrationnumber from a member EU country into the UK and also have already paid vat in the country then to prevent double taxation and lower your costs, you should surely have a vat refund. Even though you might not be able to directly deduct the vat amount in your next vat return, you can surely claim vat back from your country of origin provided you follow their vat rules.
If you’re not vat registered then you can certainly use the vat online services offered by HM customs and excise customs vat or go to the hmrc vat website to register your organization first. If you are not internet savvy or have trouble in comprehending vat rules then it could well 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 within the original country before you claim vat back. You need to fill the vat form for vat reclaim before 9 months within the next calendar year once you have paid the original vat amount in order to qualify for a vat refund. However, this time period varies in various countries. You might also need 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 coded in Polish language before it’s sent for any reclaim. In such a case, the local vat agent will be in a better position to understand the precise laws of each country.
Once you have submitted all relevant documents to assert vat back, then you should receive the vat refund in the designated time frame specified by the exact country. In great britan the time period is generally around 4 months when your claim is processed and approved without the requirement for additional proof. You may receive your vat refund in any EU country that you desire or even in the UK provided you have a valid bank account in the desired country. However, you should remember to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires services or goods which have already paid vat in the nation of origin before reaching the shores of your country in which you need to pay vat again, you’ll be able to reclaim the excess vat paid on them. A vat agent that’s well versed in international and national vat rules will be able to help you towards claiming vat back without difficulty. If you have just started trading internationally then you can claim vat back after vat registration and lower your costs to some large degree.