If you run a trading business in the UK or any other EU country and have imported services or goods that has already paid vat in the country of origin then you can claim vat back after vat registration. However, it is important to study many different rules required for vat refund before you decide to stake your claim for a vat reclaim vat registration.
Although tourists and certain other individuals can claim VAT or vat once they return back in order to their own country simply by showing the initial vat invoice displaying the vat rate and vat amount, businesses have to furnish a lot more details before they can be eligible for a a refund. In the event you too have imported services or goods from a member EU country into the UK and have already paid vat in the country then in order to avoid double taxation and lower your costs, you ought to surely apply for a vat refund. Although you might not be in a position to directly deduct the vat amount in 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 utilize the vat online services offered by HM customs and excise customs vat or go to the hmrc vat website to register your organization first. If you are not internet savvy or have trouble in comprehending vat rules then it would be better to appoint a vat agent that provides all vat services including obtaining refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims on your behalf. You can also appoint different vat agents in different countries and register them separately, especially if you import services and goods from different countries.
You should make sure that you retain all original documents of vat paid within the original country before you claim vat back. You should fill up the vat form for vat reclaim before 9 months within 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 might also need to climb over language barriers between various EU countries while submitting your tax documents. For instance, Poland stipulates that you attach the faktura vat or tax invoice which is written in Polish language before it’s sent for any reclaim. In such a case, a local vat agent will be in a better position to comprehend the specific laws of each country.
After you have submitted all relevant documents to assert vat back, then you should receive the vat refund in the designated time frame specified by the specific country. In the UK the time period is usually around 4 months when your own claim is processed and approved without any need for additional proof. You can receive your vat refund in a EU country that you desire or even in britain provided you have a valid banking account within the desired country. However, you should remember to submit proper documentation since any rejected vat claim will most likely be looked with suspicion and handled strictly by the concerned vat authorities of the country vat number.
If your business requires services or goods which have already paid vat in the country of origin before reaching the shores of your country in which you have to pay vat again, you’ll be able to reclaim the excess vat paid on them. A vat agent that is well versed in international and national vat rules should be able to help you towards claiming vat back with ease. For those who have just started trading internationally then you can claim vat back after vat registration and lower your costs to some large degree.