The system of VAT or value added tax strives to eliminate the problem of double taxation and if you have already paid vat on goods or services then you should certainly not lose out on vat refunds to recover previously paid vat. If you are a vat registered trader in the UK then you need to follow uk vat rules enforced by hmrc or HM Revenue and Customs so that all your refunds successfully materialize in your bank account.
The European Commission has specified several vat rules concerning cross-border refunds of vat by all member eu countries that levy vat in their respective countries. Previously, the system required cumbersome paperwork that used to take a lot of time and energy that dissuaded many traders from filing for vat. This resulted in loss of income for traders as well as boosted up their costs. However, from January 1, 2010, eu vat rules specify that the entire system has been transferred online and if you are a trader with vat registration in the UK then this is definitely good news.
If you have imported goods from a member eu country and have already paid vat in that country then you can definitely file for vat reclaim on that original vat amount. If your employees have visited that country for trade shows and have paid vat tax for such trade shows or for refreshments, dining, traveling, etc then you can also reclaim vat paid on such services provided you meet all the requirements laid down by hmrc.
You can however apply for vat refunds in the UK only if you are not a vat registered trader in the eu country from where you have claimed to have paid vat in the first place. You will also need to prove that you do not reside in that country or have a business place in that country. In addition, you will also need to prove that you do not supply goods or services to the country of origin where vat has already been paid. You can also claim vat back for any capital goods that you have imported for use in your business.
You will need to make your vat refund claims within 9 months after the end of any calendar year in which you might have originally paid vat. Since the process of successfully receiving the vat amount of each claim takes between 4 to 8 months, you should definitely hire an expert vat agent to file vat claims on your behalf and follow them up until the money is received back into you bank account. You can simply pay a fixed percentage of all successful vat reclaims to your vat agent to free yourself of any financial burden and keep motivation levels high at all times. The closure of each successful vat claim will surely provide your business with some much-needed cash inflow while lowering your product costs at the same time.
Each eu country that follows vat has provisions for refunding vat on imports if it has already been paid once in the country of origin. If you are a vat registered trader in the UK then you too would have a chance to reclaim paid vat by following proper online procedures. Do not lose out on vat refunds to recover previously paid vat so as to ensure that your business remains competitive and receives vital funds at regular intervals at the same time.