UK: New Guidance on VAT refunds for UK and non-UK businesses

HMRC released new guidance for UK and Isle of Man businesses who wish to claim an EU VAT refund as well as for non-UK businesses who wish to claim a VAT refund in the UK.

The guidance moves on to explain how each VAT refund scheme works.

UK and Isle of Man businesses – EU VAT refunds

This guidance replaces Notice 723A and only applies to supplies made on or after 1st January 2021. For expenses made on or before the 31st of December 2020, the deadline for claiming a VAT refund was the 31st of March 2021 and since April 2021 UK businesses can no longer use the EU electronic portal.

UK and Isle of Man businesses can claim VAT refunds in the EU after the end of the transitional period by using the existing UK processes for non-EU businesses which vary depending on the country where the VAT claim takes place.

Refunds of UK VAT for businesses established outside the UK

Companies can apply if they are VAT registered in a country outside the UK and are not registered or liable for VAT in the UK and have no presence in the UK (place of business or residence).

The country of establishment of the non-UK business must allow a similar treatment to UK traders in respect of its own turnover taxes.

A list of non-accepted goods and services is also included in the guidance. Please click here to view the full guidance posted by HMRC