Post by Peter T. Daniels Post by charles
Another effect of having VAT. Declaration with paper proof of VAT having
been paid make the VAT reclaimable,
in the UK, VAT can only be reclaimed if the bill been paid by the VAT
registered company. so individual's hotel expenses can't be covered -
unless the company is charged directly. It usen't to be like that, I don't
know when it changed.
Maybe it's/has been different in Britain, but both times I returned from
Germany, along with the customs declaration to prepare for the US agent
there was a form to claim return of VAT, but since I only purchased a
book or two at a museum shop, the amount was too small to bother with
(maybe even below a certain threshold?).
Is it worth nit-picking over the use of the same word twice? Yes, of
"Reclaim" has (technically) different meanings above. I think it's
accurate to say, as Peter did, that on leaving the EU a foreign visitor
can reclaim the tax paid on goods he's taking away with him. I don't
know how it's done, but tax paid by the purchaser during the visit on
certain things for export is refunded on or after leaving. (Though in
the UK, the tax rate for printed books is zero percent, so there's
nothing to reclaim).
The "reclaim" in the first two quoted paragraphs (Jan then Charles)
actually means something like "offset". A VAT-registered person must
collect VAT on his/its sales ("output VAT"), but may offset against that
the VAT it has paid its suppliers ("input VAT") before paying the net
output VAT to Her Majesty's Revenue and Customs. If input tax exceeds
output tax in a VAT accounting period, then it's correct that an actual
reclaim of that balance is allowed.
Such an interesting topic...