In case you have already paid VAT in a foreign eu country and have to pay for exactly the same again in your own country then you can certainly reclaim vat to reduce the burden of double taxation. The whole process could be completed online, especially if your vat registered organization is located in the UK in which the HM revenue and customs or hmrc department offers several vat online services including the vat refund scheme that makes reclaiming vat vatnumbers easy.
In case you have purchased goods from another vat enabled country within the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc in which you do not have a vat registered business and have already paid vat in the country of origin then you can and should claim that vat back. This will not only reduce your product cost but will also allow for vital funds to circulate back to your business. Although the vat reclaiming process typically takes between four to eight months to complete, you can easily appoint a vat agent that's an expert in eu vat and uk vat refund rules. This should help you to concentrate on your business while your agent attempts to reclaim vat as your representative by utilizing the online vat refund scheme.
Before you can post the first claim for vat, you will need to be a vat registered trader in the United Kingdom and will also have to register for vat refund with the hmrc. You'll have maximum of 9 months after the end of a year or so to make your vat refund application. Since you can simply fill out the online vat form to reclaim any previously paid vat, you will not have to fill out and dispatch any paperwork but should attach scanned copies of vat paid invoices for claims more than a stipulated amount. Some countries might also insist on looking at original invoices that you might have to dispatch in order to get an effective refund. Again, your vat agent can help you to complete all necessary formalities.
Many eu countries have their own version of a vat invoice and have different vat rates for a number of products or services. For example, Poland requires its vat registered traders to issue a faktura invoice or vat invoice. However, most eu countries do offer some kind of vat refunds to avoid the problem of double taxation on goods and services. You cannot deduct the vat refund amount in your routine vat returns but will instead need to use the vat refund scheme for the same. If you have made a vat reclaim in a eu country then you'll usually receive the refund amount in their currency. You may either transfer the refund amount to an account in the country or directly arrange for the money to generally be received within your UK banking account by providing them the required details including your banking account number.
In case you constantly need to import goods or services to the UK where vat has already been paid then you should sign up for the vat refund scheme provided by the hmrc vat department. Once you successfully reclaim vat you'll be able to accurately price your products and services while receiving a necessary financial injection in your business.
