You can reclaim vat to reduce the load of double taxation

If you have already paid VAT inside a foreign eu country and also have to pay for the same again throughout your home country then you can certainly reclaim vat to reduce the burden of double taxation. The entire procedure can be completed online, especially 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 vat numbers an easy process.

In case you have purchased goods from another vat enabled country in the European Union like Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you do not have a vat registered business and still have already paid vat in the country of origin then you can certainly and must claim that vat back. This will not only lower product cost but also allow for 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 that is an expert in eu vat and uk vat refund rules. This will help you to concentrate on your business 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 UK and will also have to register for vat refund with the hmrc. You’ll have maximum of 9 months following the end of a year or so to make your vat refund application. Since you can simply complete the online 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 over a stipulated amount. Some countries may also insist upon looking at original invoices that you might need to dispatch to get an effective refund. Again, your vat agent can help you to complete all necessary formalities.

Many eu countries have their own version of a vat invoice and have different vat rates for various products or 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 avoid the problem of double taxation on goods and services. You simply can’t deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the very same. If you have made a vat reclaim in a eu country then you’ll usually receive 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 generally be received within your UK bank account by providing them the necessary details as well as your bank account number.

In case 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. Once you successfully reclaim vat then you can accurately price your items and services while receiving a necessary financial injection in your business.