VAT refunds from EU states

Tax Comments Off on VAT refunds from EU states

A UK VAT registered business may only claim a VAT refund from other EU countries where all the following conditions are met:

  • The business is not VAT registered or liable to be VAT registered in the EU country in which the claim is to be made.
  • The UK business does not have a place of business or other residence in the other country.
  • The expenses that are being claimed are for business purposes.
  • The UK Company holds original invoices for all expenditure
  • During the refund period the UK business did not supply any goods or services in the Member State of refund with the exception of:i) transport services and services related to the international carriage of goodsii) supplies of goods or services where VAT is payable by the person to whom the supply is made.

It is important to note that although a UK VAT registered business submits the form to HMRC the actual request for a refund is dealt with by the EU country where VAT is being claimed.  HMRC will make some initial checks to the suitability of an applicant e.g. a business which only makes exempt supplies would not have their application forwarded to another member states (as no VAT would be refundable).

If you think you may have VAT to reclaim we can help.

Please note that the deadline for recovery of expenses incurred during 2010 calendar year is 30 September 2011.


Lesley Malkin

Audit Partner