If your business has suffered VAT on expenses incurred in another EU country, for example overseas hotel and restaurant bills, then it is possible to reclaim the foreign VAT.
The foreign VAT must not however be reclaimed on the UK VAT return but by using HMRC ‘s VAT online services system.
The foreign VAT refund claims can be made either quarterly or annually but there is a de-minimis amount that may be reclaimed quarterly.
The conditions for being able to reclaim the foreign VAT are that the business must:
• be VAT registered in the UK
• not be registered for VAT in the EU country nor have a place of business there
• not make supplies of goods or services in that EU country, except for transport services.
We can assist with your refund claims if this applies to your business. For more information and to discuss your tax affairs in further detail, please contact your usual Beavis Morgan Partner.