In case you run a trading business in the united kingdom or other EU country and have imported services or goods which has already paid vat in the nation of origin you’ll be able to claim vat back after vat registration. However, you should study all different rules required for vat refund before you stake your claim for a vat reclaim.
Although tourists and certain other individuals can claim VAT or vat once they return back in order to their country simply by showing the original 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 vat registration number from a member EU country into the UK and have already paid vat in that country then in order to avoid double taxation and lower your costs, you ought to surely apply for a vat refund. Although you may not be able to directly deduct the vat amount as part of your next vat return, you can surely claim vat back from the country of origin provided you follow their vat rules.
If you are not vat registered then you can certainly use the vat online services offered by HM customs and excise customs vat or visit the hmrc vat website to register your organization first. If you’re not internet savvy or have trouble in comprehending vat rules it would be better to appoint a vat agent that delivers 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 goods and services from different countries.
You should make sure that you retain all original documents of vat paid within the original country before you can claim vat back. You need to fill the vat form for vat reclaim before 9 months in the next calendar year once you have paid the original vat amount so that you can be eligible for a 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 instance, Poland stipulates that you attach the faktura vat or tax invoice which is coded in Polish language before it’s sent for a reclaim. When this happens, a local vat agent would be in a very stronger position to understand the specific laws of each country.
After you have submitted all relevant documents to claim vat back, then you should get the vat refund in the designated time frame specified by the exact country. In great britan the time period is generally around 4 months when your own claim is processed and approved without the requirement for additional proof. You can receive your vat refund in any EU country that you desire or perhaps britain provided you’ve got a valid banking account in 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 that country.
In case your business requires goods or services that 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 claim back the excess vat paid on them. A vat agent that’s amply trained in international and national vat rules should be able to guide you towards claiming vat back with ease. For those who have just started trading internationally you’ll be able to claim vat back after vat registration and reduce your costs to a large degree.