RESOURCES

Reclaiming foreign VAT

Reclaiming EU VAT paid in the UK

UK VAT registered businesses can use the UK VAT refund scheme to reclaim the VAT that the business has paid in other EU countries, providing that the business:

  • is not VAT-registered in the other EU country; or
  • does not have a place of business in the other country; or
  • does not make any taxable supplies in the other country.

Reclaiming foreign VAT

The UK business can claim for a VAT refund for most goods or services that the business purchases in the other EU country, providing of course that the items are VAT deductible in that other country.  It is worth noting that the rules for claiming VAT back are slightly different in each EU country. Each EU country has set a minimum amount that can be refunded. The minimum amount varies between EU countries, but is generally, for the first repayment claim, €50. For any claim a valid invoice will be required

Expenses the business can-not claim for

The UK business can-not claim for

  • goods brought in from another EU country
  • goods or services purchased for resale

Making a repayment claim

Claims can be made using HMRC’s VAT online services. To do this, your business must be registered to use these services. Registration can take a while, so it’s best to register as soon as possible. Alternatively, you can appoint an agent, such as ourselves, to make a claim on your behalf. You must claim by 30 September of the year following the one in which you were charged the VAT that you want to reclaim. Normally, providing all is in order, you will receive the refund within about 4 months.

Evidence needed for claims

In most cases you don’t need to send paper invoices or other documents when you submit a refund claim. That said, some countries will ask you to attach copies of invoices over certain amounts to your claim. You must keep all of the original invoices and other documents supporting your claim as they may be needed at a later date.

Reclaiming EU VAT paid in the UK UK VAT registered busi […]

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