If you do not want to end up paying vat twice on goods imported into the UK or on official services utilized in another eu country then you should apply for a refund of vat while remembering that for successful vat refund uk vat rules need to be followed. You will have to follow rules set up by Her Majesty’s Revenue and Customs department or hmrc while reclaiming previously paid vat.
All eu countries that follow vat need to implement eu vat directives that are issued by the European Commission. The hmrc interprets the basic rules issued by the EC and implements them to all vat registered businesses in the UK, Northern Ireland, and the Isle of Man. If you are a trader with vat registration in any of these regions then you will need to follow specific rules to successfully receive the earlier amount of vat back into your account. If your business requires you to import goods from other eu countries where vat is levied or have participated in conferences, workshops, or trade-shows in such countries along with your employees then you might have been charged vat in those countries.
However, you might also have to pay input vat when the goods are imported in the UK. Any vat that you pay in a eu country might eat into your profits if you do not claim it back. In such a case, you should try for a vat uk refund to avoid getting taxed twice. From January 1, 2010 onwards all vat refund claims in the UK have to be made online as per EC directives. You should first register at hmrc vat website so as to gain access to all vat online services offered by them. Once you have registered with hmrc then you can fill up the applicable online vat form or enlist the help of a competent vat agent that can also register and act on your behalf.
Since vat refunds take at least 4 months to materialize and even 8 months if hmrc or the country of origin where vat was originally paid, responds with additional questions then you might have a difficult time in monitoring each application individually. In such a case, your vat agent could monitor each vat reclaim application and claim a portion of the vat amount that is returned back to you by hmrc as fees. This would free you from paying any fees upfront as well as help you to forget about chasing each refund on your own.
You will also need to store each vat invoice or vat receipt that indicates vat paid for goods or services in another vat enabled eu country. These documents will need to be presented with your vat reclaim application so that the corresponding eu country can process your vat reclaim application and transfer the amount in their currency in case of a successful outcome. You can then convert the amount in GB Pounds before you plough it back into your business. Regular reclaims will surely help improve the bottom-line of your business while bringing about a smile on the face of your vat agent at the same time.
The system of vat tax empowers you to apply for vat refunds in case vat has been paid twice over the same goods or services. If you are a vat registered trader running a business in the UK then for successful vat refund uk vat rules need to be followed and you can visit the hmrc website to learn more while empowering your vat agent to recover all previous double-tax payments.