VAT paid in other countries is often recoverable by VAT-registered businesses in the UK, who bought goods or services for business use. The rules that govern what VAT is refundable depend on the other country’s rules for claiming input tax. It is important to note that VAT incurred in foreign countries can never be reclaimed on a domestic UK VAT return.
Before the Brexit transition period ended there was an EU-wide portal that allowed claims to be made electronically via the tax authority in which the claimant is established. As part of the withdrawal agreement, it was decided that the portal would remain open until 31 March 2021. This meant that the deadline for the submission of any VAT refund request for expenses incurred in other EU member states during the 2020 calendar year was 31 March 2021.
Since 1 April 2021 UK businesses no longer have access to the EU electronic portal. UK and Isle of Man businesses can still claim refunds of VAT from EU businesses for VAT incurred on or after 1 January 2021 but are required to use the existing processes for non-EU businesses.
Are you experiencing difficulties with VAT submissions or VAT refund claims? Call MJB Avanti (08000) 388 799 to discuss our VAT services.
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