In case you have already paid VAT in a foreign eu country and also have to pay extra for exactly the same again in your own country then you can certainly reclaim vat to reduce the burden of double taxation. The whole procedure can be completed online, especially if your vat registered business is located in the United Kingdom in which the HM revenue and customs or hmrc department offers several vat online services such as the vat refund scheme that makes reclaiming vat an easy process.
In case you have purchased goods from another vat enabled country within the EU like Spain, Sweden, Hungary, Poland, Italy, Germany, etc where you do not have a vat registered business and still have already paid vat in the country of origin then you can certainly and must claim that vat back. This will not only lower product cost but will also enable vital funds to circulate back into your organization. Even though the vat reclaiming process typically takes between four to 8 months to complete, you can simply appoint a vat agent http://vatnumbers.com that is a specialist in eu vat and uk vat refund rules. This will help you to focus on your organization while your agent tries to reclaim vat on your behalf by utilizing the online vat refund scheme.
Before you post the first claim for vat, you will have to be a vat registered trader in the UK and will also have to sign up for vat refund with the hmrc. You'll have maximum of 9 months after the end of a calendar year for making your vat refund application. Since you can easily complete the web based 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 may also insist upon 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 the vat invoice and also have different vat rates for a number of goods and services. For instance, 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 issue of double taxation on goods and services. You simply can't deduct the vat refund amount within your routine vat returns but will instead need to use the vat refund scheme for the very same. If you have made a vat reclaim in 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 the country or directly arrange for the money to generally be received in your UK bank account by giving them the necessary details as well as your bank account number.
In case you constantly have to import services or goods into the UK where vat has already been paid then you should sign up for the vat refund scheme offered by the hmrc vat department. Once you successfully reclaim vat you'll be able to accurately price your products and services while getting a necessary financial injection in your business.
