If you have already paid VAT in a foreign eu country and also have to pay for the same again in your own country then you can reclaim vat to lower the burden of double taxation. The entire procedure can be completed online, especially if your vat registered business is located in the UK in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat vatnumbers.com easy.
If you have purchased goods from another vat enabled country within the EU such as 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 should claim that vat back. This will not only reduce your product cost but also allow for vital funds to circulate back to your business. Although the vat reclaiming process typically takes between four to 8 months to finish, you can easily appoint a vat agent that’s an expert in eu vat and uk vat refund rules. This should help you to concentrate on your organization while your agent tries to reclaim vat as your representative by using the online vat refund scheme.
Before you post the 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’ll have maximum of 9 months following the end of the year or so for making your vat refund application. Since you can simply complete the online vat form to reclaim any previously paid vat, you will not need to fill out and dispatch any paperwork but might need to attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries might also insist upon taking a look at original invoices which you may need to dispatch to get a successful refund. Again, your vat agent can assist 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 goods and 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 prevent the problem of double taxation on products or 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 in a eu country then you’ll usually get the refund amount in their currency. You can either transfer the refund amount to an account in the country or directly arrange for the money to be received within your UK bank account by giving them the required details as well as your banking account number.
If you constantly need to import goods or services into the UK where vat has already been paid you then should register for the vat refund scheme offered by the hmrc vat department. Once you successfully reclaim vat then you can accurately price your products and services while receiving a much needed financial injection in your business.