If you have already paid VAT in a foreign eu country and also have to pay for exactly the same again throughout your home country then you can certainly reclaim vat to reduce the load of double taxation. The entire process could be completed online, particularly if your vat registered business is situated in the United Kingdom where the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme which makes reclaiming vat an easy process.
If you have purchased goods from another vat enabled country within the European Union like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not have a vat registered business and still have already paid vat in the country of origin then you can and must claim that vat back. This will not only lower 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 eight months to finish, you can simply appoint a vat agent that’s a specialist in eu vat and uk vat refund rules. This will help you to focus on your organization while your agent attempts to reclaim vat on your behalf by using the online vat refund scheme vat number.
Before you can post your first claim for vat, you will need to become a vat registered trader in the United Kingdom and will also need to sign up for vat refund with the hmrc. You will have a maximum of 9 months after the end of a year or so for making your vat refund application. Since you can easily complete the online vat form to reclaim any previously paid vat, you will not need to complete and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries might also insist on taking a look at original invoices which you may have to dispatch in order to get a successful refund. Again, your vat agent can help you to complete all necessary formalities.
Many eu countries have their own version of a vat invoice and have different vat rates for a number of products or services. For example, 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 issue of double taxation on goods and 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 same. In case you have made a vat reclaim in a eu country then you will usually get the refund amount in their currency. You can either transfer the refund figure to an 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 as well as your banking account number click here.
If you constantly need to import goods or services to the UK where vat has already been paid then you 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 much needed financial injection in your business.