If you have already paid VAT in a foreign eu country and have to pay for exactly the same again throughout your home country then you can reclaim vat to reduce the load 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 that makes reclaiming vat an easy process.
In case you have purchased goods from another vat enabled country within the EU such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not have a vat registered business and have already paid vat in the country of origin then you can and should claim that vat back. This will not only lower product cost but will also allow for vital funds to circulate back into your business. Even though the vat reclaiming process usually takes between four to eight months to complete, you can simply appoint a vat agent https://vatnumbers.com that is a specialist in eu vat and uk vat refund rules. This should help you to focus on your business while your agent attempts to reclaim vat as your representative by using the online vat refund scheme.
Before you post the first claim for vat, you will have to be a vat registered trader in the United Kingdom and will also have to register for vat refund with the hmrc. You’ll have maximum of 9 months after the end of a calendar year for making your vat refund application. Since you can easily fill out the web based vat form to reclaim any previously paid vat, you will not have to fill out and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries may also insist on looking at original invoices which you may have to dispatch to get a successful refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own version of a vat invoice and have different vat rates for various 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 form of vat refunds to avoid the issue of double taxation on goods and services. You cannot deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the 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 may either transfer the refund amount to a merchant account in the country or directly arrange for the money to generally be received in your UK bank account by giving them the required details as well as your bank account number.
In case you constantly have to import services or goods to the UK where vat has already been paid then you should register for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat you’ll be able to accurately price your products and services while getting a much needed financial injection in your business.