The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The note provides details of the procedure that needs to be followed by overseas businesses in order to reclaim UK VAT they incur from 1 January 2021.
See the Foreign VAT refunds ― obtaining refunds from EU member states guidance note for details on recovering VAT incurred in EU member states.
Sometimes, a foreign business which is not registered for VAT in the UK may nevertheless incur UK VAT for a business purpose.
A typical example of this would be where the foreign business takes part in a UK trade fair and is charged UK VAT.
Because the business does not have a UK VAT registration number, the UK VAT cannot be claimed as input tax via a UK VAT return in the normal way. However, subject to meeting certain conditions, it may be possible for the foreign business to make a claim for a refund of the UK VAT via a separate process.
The foreign business must satisfy certain eligibility requirements in order to make a refund claim, namely:
it must be registered as a business in an overseas location
it must not be VAT registered in the UK or required to be VAT registered in the UK
it must not have a place of business or a place of residence in the UK
it must not make supplies in the UK with the exception of:
transport services related to the international carriage of goods
supplies of services where the person receiving the supply is responsible for accounting for any VAT due (ie the customer is required to account for VAT using the reverse charge)
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