UK VAT claims by non-EU businesses
There are special rules for businesses established outside the EU submitting a claim for VAT incurred on goods or services bought in the UK. The exact rules of what VAT is refundable can be complex. There are also a number of conditions which must be met in order for a claim to qualify.
The deadline for the submission of a refund request for expenses incurred in the UK by non-EU businesses during the period 1 July 2019 – 30 June 2020 is 31 December 2020. However, HMRC has published a new Revenue and Customs Brief setting out actions HMRC is taking to support businesses who have been having difficulties in obtaining a certificate of status. One of the conditions for making a claim is for the claimant to obtain the required certificate of status from their official issuing authorities. This may not be possible due to measures taken by jurisdictions in response to coronavirus.
HMRC has agreed that due to this specific circumstance, they will allow overseas businesses an additional 6 months to submit a valid certificate of status, which means the certificate of status must be submitted on or before 30 June 2021.
Businesses must still submit their application for VAT refunds and all other documentary evidence required to process their claims on or before 31 December 2020.
UK VAT claims by non EU businesses
There are special rules for businesses established outside the EU submitting a claim for VAT incurred on goods or services bought in the UK. The exact rules that determine what VAT is refundable can be complex. There are also a number of conditions which must be met in order for a claim to qualify.
The deadline for the submission of a refund request for expenses incurred in the UK by non-EU businesses during the period 1 July 2018 – 30 June 2019 was 31 December 2019. HMRC has reported that due to the impact of Coronavirus there are some delays in making repayments. HMRC generally aims to process and refund overseas VAT claims within 6 months of the submission deadline of 31 December 2019 i.e. by 30 June 2020. HMRC now expects to pay valid 2018-2019 claims by 30 September 2020. HMRC will contact claimants whose VAT claims will not be paid by 30 September 2020 either because further information is needed or for any other reason.
HMRC is also reminding those concerned that claims for 2019-20 need to be submitted by 31 December 2020. One of the conditions for making a claim is for the claimant to obtain the required certificate of status from their official issuing authorities. This may not be possible due to measures taken by jurisdictions in response to Coronavirus. Claimants who submitted their VAT refund claim without a certificate of status will not have their claim rejected, but it will be put on hold until 31 December 2020. HMRC should be contacted for further case specific advice if obtaining a certificate of status before 31 December 2020 is likely to be problematic.
UK VAT claims by non-EU businesses
The VAT paid in other EU countries is often recoverable by VAT-registered businesses in the UK, who bought goods or services for business use. The rules that govern the amount of VAT repayable depends on the EU countries rules for claiming input tax. It is important to note that VAT incurred in foreign countries can never by reclaimed on a domestic UK VAT return.
There are special rules for businesses established outside the EU submitting a claim for VAT incurred in the UK. The deadline for the submission of a refund request for expenses incurred in the UK by non-EU businesses during the period 1 July 2018 – 30 June 2019 is 31 December 2019. There are a number of conditions which must be met in order for a claim to qualify.
The form that should be used by these businesses to submit a claim is called a VAT65A form. The VAT notes explain how the form should be completed and includes details of alternative versions that can be used. The telephone number to contact the Overseas Repayment Unit has been updated.
