What are the conditions for securing a VAT refund in the United Kingdom?A company established in a member country of the European Union which has incurred specific taxable expenses in the United Kingdom can recover its VAT as long as the company has not conducted any taxable operations in the country.
VAT is deductible from your business expenses provided you respect the procedure and deadlines governed by the European directive. In this article, you will find the information you need to submit a VAT refund claim in England.
If you are established in a country outside the European Union, you are required to appoint a tax representative. This representative must be subject to VAT, established in the United Kingdom and accredited by the tax authority. Please contact us to obtain further information, or go to the page dedicated to VAT refunds for countries outside the EU.
VAT REFUND PROCEDURES IN THE UNITED KINGDOM
First, you must list expenses which may be refundable depending on your costs.
Below is a summary table of expenses that may be deductible, but please note that this is not an exhaustive list and certain categories may have specific provisos.
| Hotel and accommodation | YES |
| Meals | YES |
| Invitation | NO |
| Passenger transport | YES |
| Car Hire | YES |
| Petrol | YES |
| Diesel | YES |
| Conferences and seminars | YES |
| Training | YES |
| Goods transport | YES |
| Stand rental | YES |
You can also visit our page on the 12 techniques for becoming a VAT refund expert.
PRE-REQUISITES FOR REQUESTING A REFUND IN THE UNITED KINGDOM
First, be aware that the request must be submitted by 30th September of year n+1.
Your dossier can be presented quarterly or annually. It is important to comply with minimum thresholds when submitting this request:
- 400 euros or equivalent in the national currency if the refund period is between three months and one calendar year.
- 50 euros if the period relates to a calendar year.
WHAT SUPPORTING DOCUMENTS ARE REQUIRED TO REQUEST YOUR VAT REFUND?
Invoices are required for amounts in excess of 750 euros. If the invoice is for diesel costs, you will also be required to present your invoice for any amount of 200 euros and above.
WHAT IS THE VAT REFUND PERIOD IN THE UNITED KINGDOM?
The member State has 4 months to deal with your complete file with effect from the date of receipt of the electronic file. However, if the administration requires additional documents, the period may extend to 8 months. Once the claim is approved, payment is made within 10 working days. If your claim is rejected, you will be notified of the reason within 8 months of receipt. Be aware also that interest can then be paid in the event of a late refund. It is always possible to appeal against a decision to refuse or partially reject a claim.
However, it is advisable to avoid this type of situation by engaging the services of a tax agent or a tax representative who will be able to provide sound support in the procedure you need to follow. This solution is often used in the case of large amounts of deductible VAT or when the categories of expenditure require in-depth analysis.
ASD is a tax firm specialising in the recovery of VAT. For further information on our services please visit our dedicated page or contact us via our contact form. We shall be delighted to assist you with your procedures and handle your refund requests. Be aware that we can recover your VAT, not only in the United Kingdom but also in the 27 other member States of the European Union.
