If you have already paid VAT in a foreign eu country and also have to pay extra for exactly the same again throughout your home country then you can reclaim vat to lower the burden of double taxation. The entire process could be completed online, particularly if your vat registered organization is situated 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.
If you have purchased goods from another vat enabled country within the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where 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 http://vatcontrol.com/vat not just lower product cost but will also allow for vital funds to flow back into your organization. Although the vat reclaiming process typically takes between four to eight months to complete, you can simply appoint a vat agent that’s a specialist in eu vat and uk vat refund rules. This should help you to focus on your organization while your agent tries to reclaim vat on your behalf by utilizing the online vat refund scheme.
Before you post the first claim for vat, you will need to be a vat registered trader in the United Kingdom and will also need to sign up for vat refund with the hmrc. You’ll have 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 web based vat form to reclaim any previously paid vat, you won’t need to fill out 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 upon looking at original invoices that you might need 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 the vat invoice and have different vat rates for various 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 form of vat refunds to prevent 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 very same. In case 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 amount to a merchant account in that country or directly arrange for the money to be received within your UK banking account by providing them the required details as well as your banking account number.
If you constantly have to import services or goods to the UK where vat has already been paid then you should register for the vat refund scheme offered by the hmrc vat department. Once you successfully reclaim vat you’ll be able to accurately price your products and services while getting a necessary financial injection in your business.