Commentary

V5.151A VAT refunds to Northern Ireland businesses for VAT incurred on goods in EU member states; VAT refunds to EU businesses for VAT incurred on goods in Northern Ireland

Part V5 Compliance, enforcement and appeals

V5.151A VAT refunds to Northern Ireland businesses for VAT incurred on goods in EU member states; VAT refunds to EU businesses for VAT incurred on goods in Northern Ireland

Claims for refund/disclosure of errors in relation to VAT

V5.151A VAT refunds to Northern Ireland businesses for VAT incurred on goods in EU member states; VAT refunds to EU businesses for VAT incurred on goods in Northern Ireland

With effect from 11 pm on 31 December 2020 (IP completion day), the UK ceased, for the most part, to be tied to the EU rules in relation to VAT. One of the consequences of this change is that the EU rules relating to the refund of VAT incurred by a UK business in an EU member state generally no longer apply. Such a business must normally follow the procedure set out in V5.152, as must EU businesses which incur VAT in the UK.

However, as a result of the Northern Ireland protocol, businesses in Northern Ireland must continue to follow EU rules in relating to refunds of VAT on goods obtained in EU member states, as must EU businesses who incur VAT on goods in Northern Ireland. Businesses who a wish to claim a refund in other circumstances (ie in respect of services) must follow the rules contained in V5.152.

Conditions for recovery—refunds to EU businesses

The EU rules regarding the refund of VAT to EU businesses are set out in Directive 2008/9/EC. They were implemented in UK law by SI 1995/2518 Part XX, which was revoked by SI 2019/59, regs 12, 71 with effect from IP completion day but continues to apply subject to the modifications made with effect from

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