EU VAT after Brexit
Making EU VAT reclaims after Brexit
If you are a UK business that trades with the EU, you are currently able claim a refund on certain VATable purchases from most EU countries. When the UK leaves the EU, UK businesses will no longer be able to claim VAT refunds through the EU mechanism and will need to apply the same processes to claiming VAT refunds on EU purchases that apply to the rest of the world.
Reclaiming VAT for Non-EU business
If you want to reclaim VAT for 2018, we are advising clients to make this claim before 5pm on the 29th of March or the alternative exit date. After this time the HMRC will not be able to make a VAT reclaim as an EU member state.
Once the UK has left the EU your business will need to reclaim VAT on EU purchases by using the existing process for non-EU countries. This will include refunds for 2018 that haven’t been made before the UK leaves the EU.
This process for applying for a VAT refund will vary depending on the EU member state in question so it its important you know about the local overseas VAT reclaim process.
Some common questions include:
- What date does the claim need to be made by?
- What information do you need to supply to the overseas tax authorities? For example, some countries will require a certificate of taxable status
- Do you need to appoint a local tax representative?
Reclaiming VAT from Irish business
Most EU businesses who incur VAT charges in Ireland can reclaim input VAT so long as the following conditions are met:
- The purchases on which VAT was charged must be deductible for Irish businesses. Any goods and services included in the claim must not be for supply within Ireland.
- The trading business which is making the claim must be one which would be taxable if the business were carried out in Ireland.
- Any UK business making a reclaim must obtain written proof of its economic activity from HMRC. This would likely include proof of UK VAT registration.
Provided the above conditions are met you must lodge a claim to recoup VAT within six months of the end of the year in which the tax was chargeable.
How MJH Accountancy can help?
MJH Accountancy has offices in both the UK and Ireland so we are perfectly placed to advise business with operations in both countries. If you are a UK based business with some operations in Ireland or other EU member states we can help to safeguard your business against the effects of Brexit.
For a business make Irish VAT reclaims, we can help as follows:
- With our knowledge of the Irish VAT rules we can advise if your business is a candidate for obtaining a VAT refund in line with Irish VAT rules.
- Our Kilkenny office has a relationship with the Irish Revenue Commissioners so we can deal directly with them on your behalf.
- We can submit the claim for you to the Revenue Commissioners
- Representatives in our London based office are available to meet face to face or discuss any questions you might have over the phone.
Get in touch on the contact form below if you would like to speak to us and get more information about making VAT reclaims from Ireland or any other fears you have about trading in Ireland post Brexit.