This is a freeview 'At a glance' guide to reclaiming VAT on EU purchases.

How to reclaim VAT on purchases abroad: refunds of VAT incurred by UK businesses in the EU from 1 January 2021. 

Under the Thirteenth VAT Directive (86/560/EEC) UK businesses that incur VAT in EU countries are able to claim refunds of that VAT from the relevant member state.

  • Since 1 April 2021, UK registered businesses have not had access to the EU electronic portal unless they are registered in Northern Ireland.  
    • EU VAT claims must now be made using the previously existing process for non-EU businesses.
    • This process varies across the EU. It is necessary to follow the procedure set out by the country to which the claim relates. 
  • Member states have their own special requirements: details can be obtained from the relevant tax authority.
  • It may be necessary to provide a certificate of status when making a claim. This can be obtained from HMRC.  

Am I eligible to make a claim?

A UK business can make a VAT claim from an EU country if the business:

  • Is not based in any EU country or territory.
  • Does not make any supplies in the country where the VAT was incurred unless the supplies are:
    • Exempted transport and ancillary services.
    • Supplies to customers liable for payment of the related VAT under the reverse-charge mechanism.

Country-specific conditions

Each EU country may: 

  • Refuse to refund VAT under the procedure if the UK does not grant reciprocal refund rights for VAT to businesses based in that EU country.
  • Restrict the type of expenditure qualifying for VAT refunds.
  • Require the claimant to appoint a tax representative.

Useful guides on this topic

Importing goods into GB from 1 January 2021
The post Brexit transition period ended on 31 December 2020. HMRC has issued guidance for importing goods. 

Place of supply: Goods
The place of supply (POS) of goods determines whether the supply is within the scope of UK VAT and whether VAT is payable on that supply.

Place of supply: Services
The place of supply (POS) of a service determines whether the supply is within the scope of UK VAT and whether VAT is payable on that supply.

EU VAT e-commerce package: From 1 July 2021
On 1 July 2021 a number of European Union (EU) VAT changes took effect, including the introduction of two new One Stop Shops. What are the changes? Who is affected? 

External links

HMRC: 

European Commission: 


Squirrel ad


Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

Comments (1)

Rated 0 out of 5 based on 0 voters
This comment was minimized by the moderator on the site

If a company is an Amazon seller and is late registering for VAT can they reclaim the LU VAT charged on the Amazon seller fee's for the period from effective registration date to date VAT number is received and entered on the Amazon seller...

If a company is an Amazon seller and is late registering for VAT can they reclaim the LU VAT charged on the Amazon seller fee's for the period from effective registration date to date VAT number is received and entered on the Amazon seller account? My client has three months of VAT on charges from Amazon. Invoices are in GBP but have an LU VAT number - from the above it looks like they should be able to reclaim but would need to convert the invoice to Euros ...

Read More
Guest
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad