If you operate a trading business in the UK or other EU country and also have imported goods or services that has already paid vat in the nation of origin you’ll be able to claim vat back after vat registration. However, it is important to study all different rules necessary for vat refund before you decide to stake your claim for any vat reclaim.
Although tourists and certain other individuals can claim VAT or vat once they return back to their own country by simply showing the original vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they are able to qualify for reimbursement. If you too have imported services or goods vatregistrationnumber from a member EU country to the UK and have already paid vat in the country then in order to avoid double taxation and reduce your costs, you should surely apply for a vat refund. Even though you may not be able to directly deduct the vat amount as part of your next vat return, you can surely claim vat back from your country of origin provided you follow their vat rules.
If you’re not vat registered then you can use the vat online services provided by HM customs and excise customs vat or go to the hmrc vat website to register your business first. If you are not internet savvy or have trouble in comprehending vat rules it would be better to appoint a vat agent that delivers all vat services including applying for refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims on your behalf. You may also appoint different vat agents in different countries and register them separately, particularly if you import services and goods from different countries.
You need to make sure that you retain all original documents of vat paid within the original country before you can claim vat back. You should fill the vat form for vat reclaim before 9 months in the next twelve months after you have paid the original vat amount in order to qualify for a vat refund. However, this time around period varies in various countries. You need to to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you attach the faktura vat or tax invoice which is written in Polish language before it is sent for a reclaim. In such a case, a local vat agent will be in a better position to understand the precise laws of each country.
After you have submitted all relevant documents to claim vat back, then you ought to receive the vat refund in the designated time frame specified by the exact country. In the UK the timeframe is usually around 4 months if your claim is processed and approved without the requirement for additional proof. You can receive your vat refund in any EU country that you desire or perhaps the UK provided you’ve got a valid banking account within the desired country. However, remember that to submit proper documentation since any rejected vat claim will usually be looked with suspicion and handled strictly by the concerned vat authorities of that country.
In case your business requires services or goods which have already paid vat in the country of origin before reaching the shores of one’s country where you have to pay vat again, you’ll be able to claim back the extra vat paid on them. A vat agent that is well versed in international and national vat rules should be able to guide you towards claiming vat back without difficulty. For those who have just started trading internationally then you can claim vat back after vat registration and reduce your costs to some great extent.