Make sure to fulfill all conditions while claiming vat back
If you are a vat registered dealer or manufacturer in the UK or any other EU country then you definately must ensure to satisfy all conditions while claiming vat back. Your claim may help offset any expenses proportional to the business or lessen costs on products imported from another country where you have already paid VAT.
VAT or value added tax is a system of collecting taxes that has been implemented in several countries all over the world including the EU. It helps in avoiding double taxation on products and if you are a vat registered trader within the EU with an official vat number you’ll be able to surely reclaim any VAT that has recently been paid while importing goods imported to your own country. However, you need to fulfill all conditions and terms imposed by the customs and excise customs vat department in your own country before you can reclaim vat successfully in the country of origin.
If you are not conversant with vat rules imposed in your own country you then should hire a vat consultant or tax consultant that’s well versed with all the latest amendments in vat tax, vat rates, and also knows the correct vat refund procedures that must be followed while trying to get a vat refund. There are several factors that may qualify you to get a vat reclaim. If you have imported services or goods from another EU country where vat has been paid then you can reclaim that vat amount provided you don’t own a home or business in the country, aren’t vat registered in that country, and do not supply to that country. However, it is advisable to fully comprehend each rule in great detail before claiming vat back since there are other sub-sections in each rule that should be fulfilled too.
You can reclaim vat on import vat if there’s been vat paid in another country by using vat online services to register yourself first. If you are in the UK then once you register with hmrc vat online services you will then be able to post your obtain your vat reclaim either directly or using your vat agent. You will need to send all related documents as proof for claiming vat back and you’ll also have to be conversant with vat rules in the country or countries where the actual vat amounts have originally been paid.
There is also a time frame of nine months following end of the calendar year within which you would need to apply for a vat claim in UK even though time limit will vary in other European countries. You will also have to be careful while filling out your vat claim since most EU countries do much more than frown on incorrect or fraudulent claims. You may be penalized for a wrong claim or may also be denied any refunds.
A vat claim will help lower your vat burden provided you meet all the criteria applicable throughout your home country and also the country where you might have originally paid the vat amount. However, it is important to study each vat rule in great detail and understand its implications before claiming vat back directly or through your agent.
Tags: vat verification, european vat number