HMRC have recently advised that UK businesses wishing to use the EU VAT refund electronic system (8th directive) to submit a refund claim for 2018 must do so by 11pm on 29 March 2019. If claims are submitted after that, HMRC will not be able to send the claim on to the relevant EU member state.
If the business has paid VAT in an EU member state in 2019 it should not use the EU VAT refund system to make a claim as it may be rejected by that member state.
After 29 March, businesses must claim VAT refunds from EU member states by using the relevant member state’s existing process for businesses based outside the EU. This includes outstanding claims that relate to 2018 expenses, and claims relating to 2019.
It’s important that businesses understand the process for each EU member state they deal with as the rules can vary. For example:
- The deadline for making a claim may be different.
- You may need to supply a certificate of taxable status to support your claim.
- You may need to appoint a tax representative in the EU member state of refund.