VAT reclaim

It's your money! - reduce your UK Business Expenses - a guide for International, non-resident businesses.

Many companies are unaware that they are entitled to reclaim VAT charged on expenses they incur on business in Europe and in some other non-EU countries.  There is specific legislation that applies to all EU Member States which governs the provision of refunds to non-resident businesses. The rules are slightly different for businesses resident in the EU and business resident outside the EU which is outlined below.

1. Procedure of refund to businesses resident in other EU Member States

All EU Member States must allow a non-registered non-resident (in the country of claim, in this case UK) business to claim a refund of VAT that they incur in the course of their business. Whilst there is a common framework for such claims, there are differences between the Member States. In all cases a standard form must be completed in the language of the Member State where the VAT was incurred, and proof supplied of eligibility (usually VAT registration in the home country). In general, claims relate to calendar years, or a part thereof, and must be made within six months of the year-end.

Companies may be entitled to a refund of the UK VAT element on the following expenses incurred in the course of their business:

• Hotel/Accommodation
• Restaurant/meals
• Car hire
• Car fuel
• Professional services
• Exhibitions/Trade fairs
• Advertising /Marketing
• Workshops/conferences/seminars/meetings/training
• Costs of running a representative offices
• Telephone and communications etc…

The UK VAT legislation imposes restrictions (fully or partly denied) on VAT recovery of the following goods & services:

• business gifts
• cars made available to any extent for private use (restriction is only 50% where the car is a leased motor car)
• *entertainment (other than staff entertainment);
 
*Hotel & restaurant expenses of people travelling on business are not usually regarded as business entertainment and can be fully recovered (see attached spreadsheet for VAT rate and recovery on different types of expenses in the UK).
                     
A fiscal representative is not required and businesses can register in their own name and recover the input VAT incurred in the course of their business.

The time limit for filing the refund application is 6 months after the end of the calendar year in question i.e. before 31 December.

2. Procedure of refund to businesses resident in non-EU Member States

UK VAT legislation allows non-registered businesses outside the EU to claim refunds of VAT that they incur in the course of their business. There are rules regarding what can be   claimed and often restrictions where the home country of the claimant does not offer   reciprocal rights.

The time limit for filing the refund application is 6 months after the end of the prescribed year that runs from 1 July to 30 June in which the VAT was charged. i.e. before 31  December.

*Please note that this guidance is given in good faith, but the VisitBritain cannot be held responsible for any loss of any kind resulting from reliance on the information given.

If you are in any doubt as to how to proceed, you should consult your own professional advisors if you have one or we can recommend one.

Typical Expenses which qualify VAT refunds	VAT Rate	Recovery Restriction
Exhibitions/Trade Fairs Conferences/Workshops Meetings/Seminars Training Courses	15.00	NO
Advertising Marketing Sponsorship Research	15.00	NO
Print and Related Matters	00.00	NO
Stationary Delivery Postage	15.00	NO
Hotel/Accommodation	15.00	NO
Meals	15.00	YES
Car Rental	15.00	YES
Fuel	15.00	NO
Taxis	15.00	NO
Public Transport	00.00	N/A
Telephone Communication	15.00	NO
Professional Fees	15.00	NO

* VAT incurred on expenses related to business/client entertainment is not allowed to recover.

Please note that hotel and restaurant expenses of people travelling on business are not usually business entertainments & can be recovered.

Contacts

For advice on reclaiming UK VAT the following contacts may be of use to you. (Inclusion in this list of agencies does not imply a recommendation on the part of VisitBritain).

HM Customs & Excise
VAT Overseas Repayment
8th/13th Directive
Custom House
Londonderry BT48 7AE

t: +44 (0)2871 376200
f: +44 (0)2871 372520
w: www.hmce.gov.uk

(www.hmce.gov.uk)

Quipsound
European VAT Recovery
The Crown Building
London Road
Westerham
Kent TN16 1UT

t: +44 (0)1959 561717
f: +44 (0)1959 564740
w: www.quipsound.com

(www.quipsound.com)

FEXCO Tax Reclaim
6 King Street Cloisters
Clifton Walk
London W6 0GY

t: +44 (0)20 8563 6691
f: +44 (0)20 8563 6690
w: www.fexcovatrefunds.com

(www.fexcovatrefunds.com)

Vatback/Busivat Tax Free Services
PO Box 243
Reigate
Surrey RH2 9YS

t: +44 (0)1737 229400
f: +44 (0)1737 229408
w: www.vatback.com

(www.vatback.com)

PricewaterhouseCoopers
89 Sandyford Road
Newcastle upon Tyne NE99 1PL

t: +44 (0)191 232 8493
f: +44 (0)191 230 3091
w: www.globalvatonline.com



(www.globalvatonline.com)
MorganBentley
36 Bayswater
Londonderry
Northern Ireland BT47 6JL

t: +44 (0)28 7134 3909
Website: www.morganbentley.co.uk

*This document was not intended or written to be used, and it cannot be used, for the purpose of avoiding taxes. Please note that this guidance is given in good faith, but the VisitBritain cannot be held responsible for any loss of any kind resulting from reliance on the information given. If you are in any doubt as to how to proceed, you should consult your own professional advisors.