The VAT paid in other EU countries is often recoverable by VAT-registered businesses in the UK, who bought goods or services for business use.
The exact rules that determine what VAT is refundable depends on the other countries’ rules for claiming input tax. It is important to note that VAT incurred in foreign countries can never by reclaimed on a domestic UK VAT return. Claims must be made electronically via the tax authority in which the claimant is established i.e. a claim from a UK company to any other EU country must be submitted electronically to HMRC. The deadline for the submission of a refund request for expenses incurred in other EU member states during the 2014 calendar year expired on 30 September 2015.
There are also special rules for businesses established outside the EU submitting a claim for VAT incurred in the UK. The deadline for the submission of a refund request for expenses incurred in the UK by non-EU businesses during the period 1 July 2014 – 30 June 2015 is 31 December 2015. There are a number of conditions which must be met in order for a claim to qualify.
Source: HM Revenue & Customs
