If you operate a trading business in the UK or other EU country and also have imported services or goods that has already paid vat in the country of origin you’ll be able to claim vat back after vat registration. However, it is important to study all different rules necessary for vat refund before you decide to stake your claim for any vat reclaim vat check.
Although tourists and certain other individuals can claim VAT or vat once they go back to their own country by simply showing the initial vat invoice displaying the vat rate and vat amount, businesses need to furnish a lot more details before they can qualify for a refund. If you too have imported services or goods originating from a member EU country to the UK and have already paid vat in that country then in order to avoid double taxation and reduce your costs, you should surely have a vat refund. Although you may not be in a position to directly deduct the vat amount in your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you’re not vat registered then you can utilize the vat online services provided by HM customs and excise customs vat or go to the hmrc vat web site to register your business first. If you’re not internet savvy or have trouble in comprehending vat rules it could well be better to appoint a vat agent that provides all vat services including applying for refunds and handling vat returns. You can now authorize your vat agent to submit your vat claims in your stead. You may also appoint different vat agents in different countries and register them separately, particularly if you import services and goods from different countries.
You should ensure that you retain all original documents of vat paid in the original country before you claim vat back. You should fill up the vat form for vat reclaim before 9 months in the next calendar year after you have paid the initial vat amount in order to be eligible for a a vat refund. However, this time period varies in various countries. You might also need to climb over language barriers between various EU countries while submitting your tax documents. For example, Poland stipulates that you just attach the faktura vat or tax invoice which is written in Polish language before it is sent for any reclaim. In such a case, the local vat agent will be in a better position to understand the specific laws of each country.
After you have submitted all relevant documents to assert vat back, then you ought to receive the vat refund in the designated time period specified by the exact country. In the UK the time period is generally around 4 months if your claim is processed and approved without any need for additional proof. You may receive your vat refund in a EU country that you want or even in the UK provided you’ve got a valid bank account in the desired country. However, remember that to submit proper documentation since any rejected vat claim will usually be looked with suspicion and handled strictly by the concerned vat authorities of that country vat registration.
In case your business requires goods or services that have already paid vat in the nation of origin before reaching the shores of your country in which you have to pay vat again, you’ll be able to claim back the extra vat paid on them. A vat agent that’s well versed in international and national vat rules will be able to help you towards claiming vat back without difficulty. If you have just started trading internationally you’ll be able to claim vat back after vat registration and reduce your costs to a large degree.