Overseas VAT refunds (until 31 December 2020)

Produced by Tolley
Overseas VAT refunds (until 31 December 2020)

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Overseas VAT refunds (until 31 December 2020)
  • Transition period for VAT incurred in 2020
  • Refunds to EU businesses
  • Conditions
  • Applications
  • What can be reclaimed?
  • UK businesses ― claim procedure
  • What happens after the application is submitted?
  • Reclaiming UK VAT
  • What cannot be reclaimed from HMRC?
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of the procedure that needs to be followed if an EU or non-EU business wishes to obtain a refund of VAT incurred in an overseas country where it is not VAT registered or is required to be VAT registered in that country.

This guidance note only explains the procedure that can be followed by UK businesses to recover input tax incurred in EU member states until 31 December 2020 when the transition period ends. See the Foreign VAT refunds - obtaining refunds from EU member states (from 1 January 2021) and Foreign VAT refunds - refunds of UK VAT to overseas businesses (from 1 January 2021) guidance notes for details of the procedure operating from 1 January 2021.

Transition period for VAT incurred in 2020

Based on the rules that were agreed between the UK and the EU for the transition period, foreign VAT refunds between the UK and the member states can still be applied for via the current electronic EU VAT refund system. See Directive 2008/9/EC or Directive 9. The electronic portals that need to be used to make a refund request to and from the UK and the member states will remain operational until 31 March 2021 at 11pm. UK businesses should submit any claims for VAT incurred in 2020 in other member states as soon as possible. It is likely that requests for refunds in this year will be relatively small in comparison to other years as a result of the coronavirus

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