If you have already paid VAT in a foreign eu country and have to pay for exactly the same again in your own country then you can reclaim vat to reduce the load of double taxation. The entire procedure can be completed online, especially if your vat registered business is located in the United Kingdom where 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.
If you have purchased goods from another vat enabled country within the European Union 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 must claim that vat back. This will vatcontrol.com/vat 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 finish, you can simply appoint a vat agent that is an expert in eu vat and uk vat refund rules. This should help you to focus on your organization while your agent attempts 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 United Kingdom and will need to sign up for vat refund with the hmrc. You’ll have maximum of 9 months following the end of the calendar year for making your vat refund application. As you can easily fill out the web based vat form to reclaim any previously paid vat, you will not need 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 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 a vat invoice and also have different vat rates for various goods and services. For instance, 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 prevent the problem of double taxation on products or 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 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 generally be received within your UK banking account by giving them the necessary details including your banking account number.
In case you constantly have to import goods or services into the UK where vat was already 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 getting a much needed financial injection in your business.