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 reclaim vat to reduce the load of double taxation. The entire process could be completed online, especially if your vat registered business is located in the UK where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat an easy process.
In case you have purchased goods from another vat enabled country within the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not 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 only reduce your product cost but also enable vital funds to circulate back into your business. Although the vat reclaiming process usually takes between four to 8 months to finish, you can simply appoint a vat agent https://vatnumbers.com that’s an expert in eu vat and uk vat refund rules. This should help you to focus on your business 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 become a vat registered trader in the UK and will also have to sign up for vat refund with the hmrc. You will have a maximum of 9 months after the end of the year or so for making your vat refund application. As you can simply fill out the online vat form to reclaim any previously paid vat, you will not need 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 might also insist on looking at original invoices that you might need 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 a vat invoice and also have different vat rates for a number of products or services. For instance, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some form of vat refunds to avoid the problem of double taxation on goods and services. You simply can’t deduct the vat refund amount within 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 be received within your UK bank account by providing them the necessary details as well as your bank account number.
If you constantly have to import goods or services into 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 much needed financial injection in your business.