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For information of users:
This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.
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Reclaiming VAT incurred in other EU states
From 1st January 2010, refund claims for VAT incurred in other EU countries will be made online in the UK, replacing the current paper-based system. This will avoid having to make claims directly to the country concerned using the relevant foreign language. The new system will therefore make the claim process easier.
Claims can be made for an entire calendar year, or for shorter periods of at least three months, and can be submitted up to nine months after the end of each calendar year.
However, very small claims are not permitted. Claims must therefore be over the following limits:
- Claims for less than a year (but not less than three months) - EUR 400
- Claims for a whole year EUR 50.
The foreign tax authority will be allowed four months to make the refund, unless further information is requested in which case the deadline extends up to a maximum of eight months; where this deadline is not met, the refunding tax authority will be required to pay interest.
You should note that each country has its own rules as to what can and cannot be reclaimed. For example, it is not possible to claim for hotel bills and motor fuel (apart from diesel) in France.
For further information please visit: http://www.hmrc.gov.uk/vat/managing/international/overseas-traders.htm#2, or alternatively please do not hesitate to contact us.
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