In case you have already paid VAT in a foreign eu country and 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 process could be completed online, particularly if your vat registered business is situated in the UK where the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme which makes reclaiming vat 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 where you don't have a vat registered business and have already paid vat in the country of origin then you can certainly and must claim that vat back. This can vatcontrol.com/vat not only reduce your product cost but will also enable vital funds to circulate back into your business. Even though the vat reclaiming process usually takes between four to 8 months to complete, you can easily appoint a vat agent that is an expert in eu vat and uk vat refund rules. This should help you to focus on your business while your agent tries to reclaim vat on your behalf by using the online vat refund scheme.
Before you can post the first claim for vat, you will need to become a vat registered trader in the UK and will need to register for vat refund with the hmrc. You'll have maximum of 9 months after the end of the year or so to make your vat refund application. Since you can easily complete the online vat form to reclaim any previously paid vat, you will not have to complete and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims over a stipulated amount. Some countries might also insist on taking a look at original invoices which you may have to dispatch to get a successful refund. Again, your vat agent can assist you to complete all necessary formalities.
Many eu countries have their own own version of a vat invoice and have different vat rates for a number of goods and services. For example, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some form of vat refunds to avoid the problem of double taxation on products or services. You simply can't deduct the vat refund amount in your routine vat returns but will instead have to use the vat refund scheme for the very same. If you have made a vat reclaim within a eu country then you'll usually get the refund amount in their currency. You can either transfer the refund figure to an account in that country or directly arrange for the money to generally be received in your UK bank account by providing them the required details as well as your bank account number.
If you constantly need to import goods or services into the UK where vat was already paid then you should sign up for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat then you can accurately price your items and services while getting a much needed financial injection in your business.
