Vat or value added tax does away with the problem of double taxation on goods and services, and it is precisely for this reason that you should apply for vat reclaim to get back previously paid vat. If your business is located in the UK and you have paid vat in another eu country that follows vat then you can still claim the original vat amount back from that country by following proper vat norms.
Most eu countries including Italy, Greece, Poland, Sweden, Germany, Portugal, etc have embraced vat as a system to provide taxes to their governments. However, if you are a vat registered trader that imports goods into the UK or take part in trade shows in various eu countries then you might end up paying vat on goods and services much before they touch the shores of your country. On the other hand, you might also pay vat for goods or services that might have been used for your business and you can also reclaim vat paid on them.
In case you have imported goods into the UK where vat has previously been paid in another eu country then you need to follow a slightly lengthy process for reclaiming vat. It will certainly help if you let your vat agent file the online application to hmrc or Her Majesty’s Revenue and Customs department for reclaiming the amount already paid in another country. You will need to attach file attachments to your online application containing the original vat invoice issued in that country that specifies the amount of vat paid against those goods or services.
In turn, hmrc will forward your vat application to the applicable country that might even ask for your original vat certificate to prove authenticity of your vat refund claim. If all your documents manage to convince hmrc vat and the vat department of the concerned country then you can expect your vat reclaim to reward you with the desired amount within 4 months of filing your claim, otherwise you will need to wait for 8 months in case any additional details are required. The money that arrives in your bank account will also be in the currency of the country of origin and you will need to convert it to GBP before you can withdraw it. You will also have a period of 9 months after the completion of the calendar year before you can make an application for reclaiming vat.
However, instead of getting diverted from your business to track the status of your vat reclaim applications, you should simply let your vat agent handle all related paperwork until the claim is realized. Most vat agents work on a commission basis on the amount of the reclaim and will take their cut only when you receive the money. This will free you of any financial burden while providing your business with a cash injection whenever a claim materializes into your bank account.
By following vat in the UK, you have the option of lowering your business costs by recovering any vat amount already paid on goods or services. This is especially useful when you import high-value goods into the UK where vat has already been paid in the country of origin or utilize services in a foreign eu country while paying vat for the same in that country. You can now apply for vat reclaim to get back previously paid vat and breathe a sign of relief every time that vat amount returns back into your bank account.