Date16 Jun 2022
CategoryVAT & Indirect Tax, Tax
Since the UK ‘Brexited’ the EU, the procedure used by UK businesses to reclaim VAT incurred overseas has changed.
While this VAT is no longer recoverable through the EU Electronic VAT refund system (unless you trade from Northern Ireland) reclaims can still be made through the 13th Directive scheme for each country VAT has been incurred in.
It is important to be aware that a number of countries impose a deadline for making claims of 6 months after the end of the calendar year. In those cases, claims must be submitted before 30th June 2022.
UK businesses which are not required to register for VAT in the European Union, are entitled to reclaim VAT incurred on expenses that relate to activities in an EU country. Claims should be made to the national tax authorities in each EU country the VAT has been incurred in.
Specific conditions must be met. These include not being based in any EU country or territory or supplying goods or services in the country where they incurred the VAT. It is worth noting that there are EU country-specific conditions: