If you have already paid VAT in a foreign eu country and also have to pay extra for the same again throughout your home country then you can certainly reclaim vat to reduce the burden of double taxation. The entire procedure can be completed online, especially if your vat registered business is located in the UK in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat https://vatnumbers.com easy.
In case you have purchased goods from another vat enabled country in the EU 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 not only reduce your product cost but will also enable vital funds to flow back into your business. Even though the vat reclaiming process usually takes between four to 8 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 on your behalf 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 have to register for vat refund with the hmrc. You’ll have maximum of 9 months after the end of the year or so to make your vat refund application. As you can easily fill out the online vat form to reclaim any previously paid vat, you won’t have to fill out and dispatch any paperwork but might need to 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 that you might need to dispatch in order to get an effective refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own own version of the 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 provide some form of vat refunds to prevent the issue of double taxation on goods and services. You simply can’t deduct the vat refund amount within 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 in a eu country then you’ll usually get the refund amount in their currency. You may either transfer the refund amount to a merchant account in that country or directly arrange for the money to be received within your UK bank account by providing them the required details including your banking account number.
In case you constantly need to import services or goods to the UK where vat was already paid then you should register for the vat refund scheme offered by the hmrc vat department. As soon as you successfully reclaim vat then you can accurately price your products and services while receiving a necessary financial injection in your business.