When a UK VAT registered business purchases goods or services from a supplier in another EU country, that EU supplier will generally not charge VAT on the supply. This is because the UK business will be required instead to account for UK VAT on receipt of the goods or services in the UK under the ‘reverse charge place of supply’ rules. However, a UK business will still incur EU VAT on supplies actually received or consumed in another EU country. For example, sales staff travelling to Paris and staying in a hotel will be charged French VAT by the hotel.
The UK business can reclaim this French VAT, but not on its UK VAT return. Instead, claims are made under a separate EU refunds service. Claims are normally submitted for calendar years. The deadline for making a claim for 2017 is 30 September 2018. If the business has not previously registered for the EU VAT Refunds Service, it will need to register via its HMRC online portal for this separate service. This needs to be done as soon as possible as HMRC will send by post an activation PIN number which then needs be used to get access to the claims service.
When making the claim, the UK business will need to provide specific information about itself including:
The UK business will also need to include specific invoice information on the claim including:
For further information or advice about this, please contact Roger Morgan at firstname.lastname@example.org