In case you run a trading business in the UK or other EU country and have imported goods or services that has already paid vat in the nation of origin you’ll be able to 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 any vat reclaim.
Although tourists and certain other people can claim VAT or vat when they go back in order to their country simply by showing the initial vat invoice displaying the vat rate and vat amount, businesses need to furnish many more details before they can qualify for 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 to prevent double taxation and reduce your costs, you ought to surely have a vat refund. Even though you might not be in a position to directly deduct the vat amount as part of your next vat return, you may surely claim vat back from the country of origin provided you follow their vat rules.
If you are 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 web site to register your organization first. If you’re 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 in your stead. You can also appoint different vat agents in different countries and register them separately, particularly if you import goods and services from different countries.
You need to make sure that you retain all original documents of vat paid in the original country before you claim vat back. You should fill the vat form for vat reclaim before 9 months within the next calendar year after you have paid the original vat amount in order to qualify for a vat refund. However, this time period varies in different countries. You need to 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 coded in Polish language before it’s sent for any reclaim. When this happens, a local vat agent would be in a very stronger position to comprehend the specific laws for each country.
Once you have submitted all relevant documents to claim vat back, then you ought to receive the vat refund in the designated time period specified by the specific country. In great britan the timeframe is generally around 4 months when your own claim is processed and approved without the requirement for additional proof. You may receive your vat refund in any EU country that you desire or perhaps the UK provided you’ve got a valid banking account within the desired country. However, remember that 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.
In case your business requires services or goods that have already paid vat in the country of origin before reaching the shores of one’s country where you have to pay vat again, then you can claim back the extra vat paid on them. A vat agent that’s well versed in international and national vat rules should be able to guide you towards claiming vat back without difficulty. For those who have just started trading internationally then you can claim vat back after vat registration and reduce your costs to some large degree.