If you are a VAT registered trader in the United Kingdom that imports goods from other eu countries that follow the system of vat or value added tax then for vat already paid you will need to apply for refund vat. If you have paid vat on goods and services in the original country before it was imported into the UK then you can reclaim that amount by following the required vat reclaim rules.
In the UK, managing all vat, customs and excise duties are entrusted to the HM revenue and customs department or the hmrc vat department. If you are a vat registered dealer, have your own vat number, and issue vat invoices to your clients then you can register for the vat uk refund scheme launched by the hmrc department. This is an online process that eliminates dispatching paperwork although you might need to send some papers to the original eu country where the vat amount was first paid.
Once you finish the online registration by submitting the online vat form then you can start claiming vat refunds based on vat already paid in other member eu countries such as Sweden, Italy, France, Germany, Spain, Poland, etc that also follow vat. However, if you are not well-conversant with uk vat and eu vat rules then you should entrust this work to an experienced customs and excise customs vat agent that can take away all your vat worries. You can empower your agent to act on your behalf with the help of a letter of authority or power of attorney.
You will have to file for refund vat not later than nine months for any vat amount paid in the preceding calendar year. Once your refund claim is sent electronically through the hmrc website then it will be forwarded to the original eu country’s vat department where the vat amount was originally paid. You might have to scan the original vat invoice and attach it to your email, although some countries might want to scrutinize the original invoice physically for high-value vat refunds.
Your refund will usually be processed and paid within 4 months if all your documents are approved by the eu country. If, however, there are some clarifications that need to be made then the process might take an additional 4 more months. The money will be transferred into an account specified by you in the member eu country or in the UK itself, although it will be in the currency of that country. The money received will surely help you in these tough competitive times by lowering your product and service costs as well as improving your cash flow at the same time. If you import goods or services from vat-enabled member eu countries and are paying vat in the original country then you need not incur the burden of double taxation in the UK. You should simply file for a vat refund for that amount and wait patiently until your original vat amount is returned back to you within a few months.
An expert vat agent can be of great help in ensuring that your claims are filed well in time while also keeping an eye out for refunds that arrive in your bank account. Your business will certainly benefit with the refund vat uk scheme initiated by the hmrc and you can surely receive your tax money back into your own account.