If you have already paid VAT inside 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 lower the load of double check vat number taxation. The entire process could be completed online, particularly if your vat registered business is situated in the UK in which the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme which makes reclaiming vat easy.
In case you have purchased goods from another vat enabled country in the European Union such as Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you don’t have a vat registered business and have already paid vat in the country of origin then you can certainly and must claim that vat back. This can not just reduce your product cost but also enable vital funds to flow back into your organization. Even though the vat reclaiming process usually takes between four to eight 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 focus on your organization while your agent tries to reclaim vat on your behalf by using the online vat refund scheme.
Before you post your first claim for vat, you will have to be a vat registered trader in the United Kingdom and will have to register for vat refund with the hmrc. You will have a maximum of 9 months following the end of the calendar year to make your vat refund application. As you can simply complete the online vat form to reclaim any previously paid vat, you won’t have to complete and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries may also insist upon looking 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 have different vat rates for a number of goods and services. For example, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries provide some kind of vat refunds to avoid the issue of double taxation on products or services. You cannot deduct the vat refund amount in your routine vat returns but will instead have to use the vat refund scheme for the very same. If you have made a vat reclaim within a eu country then you will usually receive the refund amount in their currency. You may either transfer the refund figure to an account in that country or directly arrange for the money to be received within your UK banking account by giving them the required 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 provided by the hmrc vat department. Once you successfully reclaim vat you’ll be able to accurately price your products and services while receiving a necessary financial injection in your business.