You can reclaim vat to lower the burden of double taxation

If you have already paid VAT inside a foreign eu country and also have to pay for exactly the same again in your own country then you can certainly reclaim vat to reduce the burden of double taxation. The whole procedure can be completed online, particularly if your vat registered organization is situated in the United Kingdom where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat an easy process.

In case you have purchased goods from another vat enabled country in the European Union such as 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 and must claim that vat back. This can not only lower product cost but also allow for vital funds to flow back into your organization. Even though the vat reclaiming process typically takes between four to eight months to finish, you can easily appoint a vat agent https://vatnumbers.com that’s a specialist 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 the first claim for vat, you will need to be a vat registered trader in the UK and will also need to sign up for vat refund with the hmrc. You will have a maximum of 9 months after the end of a year or so for making your vat refund application. Since you can easily complete the online vat form to reclaim any previously paid vat, you will not need to complete and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries may also insist on looking at original invoices that you might need to dispatch in order to get an effective refund. Again, your vat agent can assist you to complete all necessary formalities.

Many eu countries have their own own version of the vat invoice and also 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 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 in a eu country then you’ll usually receive the refund amount in their currency. You may either transfer the refund amount to an account in that country or directly arrange for the money to generally be received in your UK banking account by giving them the necessary details as well as your bank account number.

If you constantly have to import services or goods to 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 getting a much needed financial injection in your business.