facebook What You Need To Know About VAT Refunds From The UK - Vigyaa
Close

Delete Collection?

Are you sure you want to delete this collection permanently?

Close

Delete Collection?

Are you sure you want to delete this collection permanently?

Everyone has a Story to Tell and an Experience to Share!

Let’s Start Writing
3092fd4d-cfec-45ba-8604-9aa8c4869282

110 views

What You Need To Know About VAT Refunds From The UK

If you are transacting with a UK based company or traveling to said destination, you may be entitled to claim back the VAT.

VAT-Refunds

The information you will find on this page covers issues related to refunds for cross-border transactions and not issues related to VAT refunds between a customer and vendor is the same country. If you are transacting with a UK based company or traveling to said destination, you may be entitled to claim back the VAT.

Below is what you need to know about qualifying for the VAT refund, when to file for the claim, and the UK VAT rates as well as the services where refunds are eligible and the processes involved in recovering the VAT claim.

1] Who Can Claim VAT Refunds?

1) VAT Refunds For EU Claimants

If you have a VAT registered company in a country that is a member of the EU and conducted business across the borders with another Member State that is not VAT registered, you qualify to recover the VAT. This is according to the Directive 2008/9/EC as envisions in Articles 170-171a VAT Directive.

2) VAT Refunds for Non-EU Claimants

If you are in a country outside the EU, and you have a VAT registered business yet you pay VAT on transactions done with another company not VAT registered located in an EU Member State, you can handle the VAT affairs via a refund from the State where the VAT was paid. This is as per the 13th Directive (69/59/EEC).

has a standard rate of 20%. It also has a reduced rate of 5% applicable to specific goods and services such as home energy, some social services, and things such as children's car seats.

2] Deadlines for Claims Submission

  • If your company is located in another State that is a member of the EU, the deadline for submitting a request for VAT refund is September 30 (Year n + 1).
  • For businesses that are outside the EU, the deadline for requesting the VAT refund is December 31 (and this is for VAT charged between July 1st and June 30th of the previous period).

3] VAT Refund Information

Here are two essential things you need to know about VAT recovery.

1) Retrospective Claims

Where a company can request for VAT refunds from the previous VAT year, and there are not extended deadlines.

A VAT registered EU claimant can request for the VAT refund from any other country that is a member of the European Union, but this is governed by the local VAT legislation of the said Member State.

For a claimant outside of the EU and refunds from a country that is not an EU member, some of the States will grant VAT refunds if the country where the business is registered has similar VAT claims regulations; this is what's known as the rule of reciprocity.

The United Kingdom does not have the Rule of Reciprocity. As such, the UK authorities can approve claims to companies that are not in the European Union Member States whether or not the authorities in such countries have similar refund requirements.

4] Services Where VAT Refund Is Available

Some of the standard services where VAT claims are applicable include.

  • Attending training courses, seminars, fairs and exhibitions.
  • Fuel for various modes of transport.
  • Food, drink and restaurant services for company employees.
  • Hiring transport and travel expenses such as bus and taxi fares.
  • Maintenance, parking, and transport.
  • Lodging, accommodation, and related services.
  • Repairs within a warranty period.

Note that every EU member country will have its rule and regulation; therefore, expect variations from state to state. Take a look at your to know more about VAT refund in the different countries.

6] VAT Refund Process for EU Claimants

The applicant has to submit an electronic refund request to the national tax authority portal. The application should have the following information.

  • The claimant's details.
  • An overview of the refund request.
  • Details of each invoice related to the VAT claim application.
  • Scanned copies of all invoices and documents related to importation where the taxable amount surpasses £200 (for fuel) and £750 (for other goods and services). The claimant may also have to submit smaller scanned copies of original invoices if and when requested.

7] VAT Refund Process for Non-EU Claimants

The claimant will have to send original copies to the tax authority where the VAT was paid and ensure the application provides the following.

  • The claimant's details.
  • An overview of the refund request.
  • A filled application form.
  • Proof of the power of attorney.
  • Details of each invoice related to the VAT claim application.
  • The original invoices related to the claim.
  • An original Certificate of VAT Status valid for the refund period in question and not older than a year. It also will serve as proof of business activity.
kina patel has done Masters in Computer Science from University of Mumbai, India. He is a passionate blogger, technology lover, plays chess, innovative, likes t

Categories

Business


Related Articles

Essential oils are very popular nowadays so almost every person is getting hands-on essential oils. The storage of essential oil has become a big problem. Most people like to store essential oils in glass jars. Glass jars do not react with any as such things so it is perfect for storage. The worst thing about glass jars is that they break. Essential oils are quite expensive so wasting essential oils can be heavy on your pocket. If by any chance you drop the essential oil bottle then your essential oil would splatter around as the glass would break. This problem made many people rely on plastic bottles. The main concern here is whether Plastic bottles safe for essential oils or not. Most people assume it to be unsafe but the surprising fact is that there are some plastic bottles that are great for essential oil storage. Here is everything that you need to know about essential oil storage in plastic containers:

Know whether plastic storage bottles are completely safe for keeping essential oils or not:

In general essential oils meant for glass bottles. Most brands sell their essential oils in a dark glass bottle so that the oil could be safe from the heat. There are some metals as well that go good with essential oil. Stainless steel containers are also nice for storing essential oils. The sad thing here is that it is not possible to store essential oil mixtures in glass or in stainless steel bottles every time. This happens especially when you are traveling. Both glass and steel are bulky materials so it becomes impossible or hard to carry while traveling. Glass is worst in this case as it tends to break. So, in this case, it is best to go with small plastic containers for storing the essential oils.

Know how you can use plastic bottles for essential oils as well as DIYs:

If you are going to prepare an essential oil mist by mixing some essential oils as well as rose water then it would be best to choose a spray bottle. Now that we all know glass spray bottles are very expensive as well as not secure. There is no spray bottle in stainless steel so it is best to go with plastic spray bottles. This shows that Plastic bottles safe for essential oils. Here you should go for dark-colored plastic bottles. Make sure to choose a sleek one so that you can carry this with you. Here you should go for a secure plastic bottle otherwise your DIY can spill all over your bag that you might not want. You can also go with plastic dropper bottles in this case as they also goes well in this case.

Know what type of plastic bottle to choose if you want to store your essential oil mask or scrubs:

We all know that essential oils are best for our skin. Many people prepare masks as well as, scrub using essential oil. Storing such things is hard. Here it would be best for you if you have got your hands on plastic containers. Make sure to have good quality plastic containers in this case. Always make sure to check the lid of the container as you need light lid in this case. It would be best for you if you can get your hands on airtight plastic containers. If would be great for you to get Plastic bottles with lids wholesale.

Things to see while choosing a plastic container for essential oil:

• It is very important for you to make sure that the plastic container is thick otherwise the temperature of your place can affect the essential oil.

• Make sure to see if the lid is tight or loose as you need to get a tight lid.

• Always go for dark-colored containers in case of essential oil as it keeps the oil safe.

• Make sure to see the quality of the plastic container.

Reference Image
Close