The following looks at refunds of VAT for UK business that buy from other EU countries and how to reclaim.
As part of your business you may have to pay VAT on goods and services bought in another EU country. As set out on GOV.UK website, if you are registered for VAT in the UK, you may be eligible to use the VAT Refund Scheme. To do so the following conditions must be met:
- you are not, cannot be or do not have to be VAT registered in that EU country
- you do not have a place of business or other residence there
- you do not make any supplies there unless
- they're transport services for the international carriage of goods
- the person you're supplying pays VAT on them
So, what can be refunded?
A refund is available for most goods and services you buy for your business, BUT:
- what you can reclaim depends on the other EU country's rules for claiming VAT
- the rules for claiming input tax are slightly different in each EU country
- each EU country has a set minimum amount of refund
- if your business makes both taxable and exempt supplies, you may not be able to reclaim all of the VAT you've paid.
How much can be claimed?
The minimum amount you can claim varies between EU countries however, generally the following applies:
€400 for claims of more than 3 months but less than a year
€50 for claims for a whole year of the period between your last claim and the end of the year
I think I'm eligible for a refund - how do I make a claim?
You can claim using VAT online services via GOV.UK website. You must be registered to use these services. Registration can take up to 7 days. Alternatively, your CavanaghKelly Client Manager can act on your behalf - please contact us for more information.
What is the time frame for making a claim?
You must claim by 30 September of the year following the one that you were charged the VAT in. The claim cannot be:
- for more than a calendar year
- less than 3 months, unless that's all that's left of the calendar year
You can claim for items missed on earlier claims if they relate to VAT you've paid in the calendar year you're claiming for.
For more information about the VAT refund scheme and how to make a claim please contact us.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.