VAT Refund: Why You Should Get Professional Help To Reclaim VAT
- Author Leslie Gilmour
- Published January 26, 2008
- Word count 501
If you do business in Europe, you should be aware that you are entitled to reclaim the VAT charged on certain services you incur. These services include employee travel and relocation costs, exhibition and marketing costs, telephone and communication charges, and the costs involved in running representative offices. The problem is that reclaiming this VAT can be a frustrating experience owing to bureaucratic hurdles and language problems. Fortunately, you can put the whole affair into the hands of a specialist firm that can take care of the whole procedure for you. Here are some great reasons you should entrust your VAT refund job to a specialist firm.
Firstly, reclaiming VAT is an onerous and time-consuming process. There are language difficulties and each country has its own system and policies. A specialist firm has the expertise and experience to deal with each country.
Consider what each application entails. Firstly, you need to prepare applications in accordance with the VAT refund law of the relevant country. These generally have to be in the primary language of the country. These applications then need to be filed to the right department and at the right time. The VAT refund procedure then needs to be monitored and perhaps followed-up to ensure the application is going through the system. Perhaps there'll be queries from the involved departments. These, of course, will be made in the language of the country involved. And possibly appeals will have to be made or extra documents submitted.
Also, a specialist firm will have the expertise and experience in VAT reclamation to get the maximum refund possible. These sums can be substantial. While VAT is meant to be a tax imposed on final consumers, it can prove a burden to firms who don't reclaim their foreign VAT. This burden can comprise up to 20% of their foreign costs depending on the VAT rates in the country they operate. For example, recoverable VAT makes up 19.6% in France, 17.5% in the UK and 19% in Germany.
Another advantage of employing a specialist firm to process you foreign VAT refunds is that you don't need to utilise any of your own staff or facilities. This allows your staff to work totally on tasks that are profitable for your company.
So if you’ve decided to look into getting a VAT refund, first check you can do it in time. If you plan to make a claim, you need to do it within 6 months from the end of the year in which the expense was incurred. Belgium and The Netherlands are exceptions. In these countries, claims can go back as far as three and five years respectively. Then look for a firm with a proven track record in getting VAT refunds to handle the whole procedure for you. Reputable companies operate on a ‘No Vat Refund - No Fee’ basis. Generally, you just have supply the original invoice for the firm to get to work. Then just get on with your business and wait for your VAT refund to arrive.
Leslie Gilmour is working with Global VAT Reclaim, an Irish based company that reclaims Vat (VAT rebate), when the VAT is paid for services or goods by Companies or Institutions outside their own country, catering for both small and large VAT reclaims.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- The Advantages of Incorporation for Realtors: Safeguarding Your Financial Future
- 10 essential tax-saving strategies for landlords: Maximise your rental income
- A Comprehensive Guide to Navigating the Process and the Role of Customs Brokers in the UK
- Outsourced Accounting Services for UK Businesses: A Cost-Effective Solution for Financial Management
- Top 8 Self Assessment tax return software
- How to Close a Limited Company in the UK
- Maximizing Your Finances: Unleashing the Power of CPA Services
- VAT penalties – New rules
- TAX-FREE STRATEGIES IN AN UNCERTAIN ECONOMY
- 2022 Energy crisis and failure to connect Reality.
- When Are Corporate and Personal Taxes Due in Canada in 2021?
- You Would Never Have Thought That Having Accounting Internship Could Be So Beneficial
- ACTIVATION OF UAN
- Focal motivations behind getting a Tax direct for Small Business Firms
- Avoiding the flood — tax issues with water rights in agribusiness
- Social security benefits for a family (COVID-19)
- How to use QuickBooks Component Repair Tool?
- Do you want to reduce your taxes for next year?
- Will you be responsible with your tax refund?
- Getting started with QuickBooks Enhanced Payroll in Brief
- Are DSTs Right For Your 1031 Exchange
- Tax Return Makeovers By Kenya Woodard
- Why have all crypto tax attempts failed?
- Are You a Corporation? Know Why Consulting a Tax Accountant Is Vital
- Share capital or share premium for your Dutch company?
- Everything investors should know about 1031 sponsors
- Why is the income tax so high in UK?
- Should I do my own tax return?
- Get More Money Back on Your Tax Return with help from the Tax Cuts and Jobs Act
- Don’t Fall Victim to these 3 Tax Scams in 2018