VAT claim deadline for overseas businesses is fast approaching

Overseas businesses can reclaim UK VAT on expenses using a special refund scheme, subject to meeting certain conditions.  Businesses in the EU should note that the process and deadline for making a claim has changed this year, due to Brexit.

The scheme applies to EU and non-EU businesses which are not UK VAT registered and can be used to claim VAT on goods and services which are consumed in the UK.  For example, the scheme is often used to reclaim VAT on hotel and subsistence costs incurred when attending meetings, conferences, exhibitions and events in the UK.  It may also be used to claim UK VAT incurred whilst performing services in the UK, where the services fall under the reverse charge rule, e.g. construction.  One key point to note is that a claim can only be made if the supplier has correctly charged VAT.

Non-EU businesses wishing to claim VAT incurred in the 12 months to 30 June 2021, must ensure that their claim is received by HMRC no later than 31 December 2021.  The same deadline applies to EU businesses wishing to make a claim for the six months to 30 June 2021 (i.e. the six months since Brexit).  The deadline is strictly enforced by HMRC.

Claims must be submitted by post and have to include a package of supporting documents which may take some time to prepare.  Therefore, businesses wishing to make a claim should give this their urgent attention, to ensure that the claim arrives on time.