EU VAT Refund claims post 29 March 2019 may be more difficult
EU VAT Refund claims post 29 March 2019 may be more difficult
Wed 06 Feb 2019
It is anticipated that, post 29 March 2019, UK businesses will experience significant difficulties in submitting an EU VAT refund claim under the 8th Directive procedure. Currently, an EU business that incurs VAT on certain business costs in another member state that it is not already VAT registered in, may make a claim for a refund of this VAT using a portal managed within the member state in which the business is registered. In the UK there is an online portal managed by HMRC. The reclaim is typically processed in arrears, so for example, EU VAT incurred in calendar year 2018 must be claimed by 30 September 2019.
In a no-deal scenario, however, the UK will be a non-EU country from 11pm on 29 March 2019 and this is expected to cause problems in claiming back VAT under the EU VAT refund scheme. Where the EU VAT being reclaimed was incurred during a period in which the UK was an EU member state, several countries, including France, Luxembourg and Belgium have made it clear that EU VAT reclaims from the UK under the EU refund process will not be accepted after 29 March 2019, (France and Luxembourg are recommending claims be made by 28 February 2019). Therefore, if you have any EU VAT to reclaim through the EU VAT refund process, it is essential that you prepare and make your claim as soon as is practical.
Please get in touch with the Mazars indirect tax team if you would like assistance or advice in processing any EU VAT reclaims.
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