VAT 126 Form: Claim VAT Refunds & Submit Your VAT

What is the VAT 126 Form? 

The VAT 126 form is a crucial document for businesses that need to reclaim VAT under the VAT refund scheme. This form claims VAT paid back on goods and services purchased for business purposes, especially for businesses that have overpaid or incurred VAT on imports. The VAT 126 form plays an important role in streamlining the VAT reclaim process, ensuring that businesses are not unduly taxed for items used in their business operations.

For businesses that meet the necessary criteria, the VAT126 claim allows them to recover VAT from previous periods. This form is part of HMRC’s effort to help businesses accurately and fairly claim VAT refunds, ensuring that the system remains transparent and effective. Without the VAT 126 claim, companies might miss the opportunity to reclaim VAT for eligible purchases, which could lead to financial losses.

Who is Eligible to Submit a VAT 126 Claim?

Eligibility to submit a VAT 126 claim is typically determined by the nature of the business and the VAT status. To be eligible, your business must be VAT registered and meet certain conditions. Businesses that have paid VAT on goods or services they used exclusively for business purposes can submit a VAT 126 claim. Additionally, certain industries, such as those involved in agricultural or international trade, might have specific rules for VAT recovery.

For example, businesses importing goods into the UK may pay VAT on the importation, and if these goods are used in the business, they may be able to reclaim that VAT via the VAT 126 claim form. Similarly, businesses that have overpaid VAT on supplies can also use this form to correct the issue. To qualify, the business must maintain clear records of VAT transactions and be able to demonstrate that the VAT was legitimately paid on business-related purchases.

How Can You Complete the VAT 126 Claim Form Accurately?

Completing the VAT 126 claim form accurately is vital to ensure that your VAT refund claim is processed smoothly. The VAT 126 form can seem complex at first, but it’s straightforward once you understand what information is required.

First, you need to gather all the necessary documentation that proves the VAT was paid on the goods or services you’re claiming. This may include invoices, receipts, and import records. When filling out the VAT 126 claim form, it’s important to ensure that all details match exactly with your records, including VAT registration numbers, transaction dates, and the total VAT paid.

To help you through the process, HMRC provides guidance and examples on how to fill out the VAT 126 claim form correctly. Pay particular attention to the section where you detail the goods or services being claimed. You must also indicate the period during which the VAT was incurred, as HMRC typically limits claims to a certain period (usually four years from the date the VAT was originally paid).

What Information Do You Need to Provide for a VAT 126 Claim?

When submitting a VAT 126 claim, you will need to provide several key pieces of information to support your request. This includes:

• Your VAT Registration Number: This verifies that your business is VAT-registered and eligible to reclaim VAT.
• Details of the VAT paid: This includes information about the transactions for which you are claiming the refund. You will need to list invoices, receipts, and any other relevant documentation that proves the VAT was paid.
• Transaction dates: You must provide the specific dates of the transactions for which you are claiming VAT back.
• Amount of VAT to be reclaimed: You need to clearly state how much VAT was paid and how much you are claiming.
• Supporting documentation: This can include invoices, receipts, contracts, and proof of payment.

Additionally, if you are claiming VAT on importation, you will need to submit the relevant customs declaration forms that show the VAT paid on imports. HMRC may also ask for further clarification if they require more details to process your VAT 126 claim.

How Do You Download and Submit the VAT 126 Form PDF for Your Claim?

The VAT 126 form is available for download directly from HMRC’s website. You can download the VAT 126 form PDF and fill it out on your computer, or you can print it and fill it out manually if preferred. To download the form, visit HMRC’s official VAT refund page, where you will find a link to the VAT 126 form PDF download.

Once completed, you need to submit the form to HMRC. This can typically be done either online or by post. However, the online submission method is faster and ensures that your form is processed more quickly. After submitting your VAT 126 claim, you should expect to receive a response from HMRC confirming whether your claim has been approved or if additional information is needed.

In some cases, HMRC may request further documentation or clarification before processing the refund. If this occurs, it’s important to respond promptly to avoid delays.

For example, if you are claiming for VAT on goods purchased from overseas, ensure that you have all the necessary import documentation, as HMRC may need to verify these details to process your VAT 126 claim.

Conclusion

In conclusion, the VAT 126 form is an essential tool for businesses seeking to reclaim VAT. Whether you’re eligible to submit a VAT 126 claim depends on your VAT registration status and the nature of the expenses. It’s crucial to complete the form accurately, providing all necessary information to avoid delays in processing your claim. Once the form is completed, you can download and submit the VAT 126 form PDF directly to HMRC for processing.

By understanding the process and ensuring all required information is provided, you can successfully reclaim VAT on eligible expenses. Remember, the more accurate and complete your submission, the faster your VAT 126 claim will be processed.

FAQs

1. What is the VAT 126 claim?

The VAT 126 claim is a form used by businesses to request a refund of VAT paid on goods and services. It is typically used when a business has overpaid VAT or incurred VAT on goods and services used exclusively for business purposes.  

2. How do I send details to support my VAT claim?

To support your VAT claim, you need to provide all relevant documentation that shows the VAT paid on your purchases. This includes invoices, receipts, and import records.  

3. How do I complete the VAT Form 126 accurately?

To complete VAT Form 126 accurately, gather all the necessary documents, such as invoices and receipts showing VAT paid. Ensure that the details in the form, such as the VAT registration number, transaction dates, and the VAT amount, match your records.  

4. Can I submit my VAT 126 claim online?

Yes, you can submit your VAT 126 claim online through the HMRC portal. Online submissions are processed faster than paper submissions. After filling out the form and attaching any supporting documents.  

5. How long does it take for HMRC to process a VAT 126 claim?

Typically, HMRC processes a VAT 126 claim within 6 to 8 weeks. However, processing times may vary depending on the complexity of the claim and the volume of submissions. If additional information is required, it may take longer to process your refund.