• Date

    16 Jun 2022
  • Category

    VAT & Indirect Tax, Tax

Time running out to recover VAT from EU countries

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.

Background information:

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:

  • refuse to refund VAT if the claimant’s country/territory does not grant reciprocal refund rights for VAT or similar to businesses based in that EU country
  • impose restrictions on the type of expenditure qualifying for refunds
  • insist that the claimant appoint a tax representative

Please get in touch with a member of the Azets VAT Team or your usual Azets contact if you require help with recovering overseas VAT under the 13th Directive procedure.

About the author

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Scott Craig

Partner and Head of VAT Edinburgh
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