UK businesses that have incurred input VAT in an EU Member State where they are not established and make no supplies are entitled to recover the VAT element of these costs by way of a cross-border refund scheme. Any potential applicant must satisfy conditions outlined by HMRC to be eligible for the scheme, including the requirement that businesses looking to recover input VAT incurred in another Member State must be a taxable person in the UK but must not be registered for VAT, or liable to register, in the country from which the refund is being sought. Any prospective application that relates to costs incurred in 2017 must be collated and submitted on or before the deadline of the 30th September 2018.

Applications relating to the calendar year 2017 that remain outstanding beyond this deadline cannot be considered for refund and this VAT element then becomes an irrecoverable cost to the business. The closer to the deadline applications are collated and submitted, the longer the respective VAT authorities may take to process them due a sharp increase in the volume of applications as the deadline approaches. Consequently, acting quickly can mean that any refund due as a result of the application is received more promptly.

For more information on whether you or your client satisfy all necessary criteria for an EU VAT refund to be available, or for advice on the actual process of achieving a refund, speak to one of our experienced consultants on our free VAT helpline.