In case you have already paid VAT inside a foreign eu country and have to pay for exactly the same again in your own country then you can reclaim vat to lower the load of double taxation. The whole process could be completed online, especially if your vat registered organization is located 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 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 have already paid vat in the country of origin then you can and should claim that vat back. This will not only reduce your product cost but also enable vital funds to circulate www.vatregistrationnumber.com back into your organization. Even though the vat reclaiming process usually takes between four to 8 months to complete, you can easily appoint a vat agent that is an expert in eu vat and uk vat refund rules. This will help you to concentrate on your organization while your agent attempts to reclaim vat as your representative by utilizing the online vat refund scheme.
Before you can post your first claim for vat, you will have to be a vat registered trader in the United Kingdom and will need to sign up for vat refund with the hmrc. You will have a maximum of 9 months following the end of a calendar year for making your vat refund application. Since you can simply fill out the web based vat form to reclaim any previously paid vat, you won’t need 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 looking at original invoices that you might have to dispatch in order to get a successful 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 have different vat rates for a number of 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 cannot deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the same. If you have made a vat reclaim within a eu country then you will usually get the refund amount in their currency. You may either transfer the refund figure 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.
If you constantly need to import goods or services to the UK where vat was already paid you then should register for the vat refund scheme provided by the hmrc vat department. As soon as you successfully reclaim vat you’ll be able to accurately price your products and services while getting a necessary financial injection in your business.