If you run a trading business in the united kingdom or any other EU country and have imported goods or services that has already paid vat in the country of origin you’ll be able to claim vat back after vat registration. However, you should study many different rules required for vat refund before you stake your claim for a vat reclaim.
Although tourists and certain other people can claim VAT or value added tax once they go back to their own country simply by showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish a lot more details before they can qualify for vatvalidation a refund. If you too have imported goods or services from a member EU country to the UK and have already paid vat in the country then in order to avoid double taxation and lower your costs, you should surely apply for 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 the country of origin provided you follow their vat rules.
If you’re not vat registered then you can use the vat online services offered by HM customs and excise customs vat or go to the hmrc vat web site 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 on your behalf. You may also appoint different vat agents in several countries and register them separately, particularly if you import goods and services from different countries.
You should ensure 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 original vat amount in order to be eligible for a 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 instance, Poland stipulates that you attach the faktura vat or tax invoice which is written in Polish language before it’s sent for a reclaim. In such a case, the local vat agent will be in a stronger position to understand the specific laws of each country.
Once you have submitted all relevant documents to claim vat back, then you should get the vat refund within the designated time frame specified by the exact country. In the UK the timeframe is usually around 4 months if your claim is processed and approved without any need for additional proof. You can 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, remember that 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 country of origin before reaching the shores of your country where you need to pay vat again, you’ll be able to claim back the extra vat paid on them. A vat agent that’s amply trained in international and national vat rules should be able to guide you towards claiming vat back without difficulty. If you have just started trading internationally you’ll be able to claim vat back after vat registration and reduce your costs to a large degree.