With the European Deadline coming to its close, tax teams will now have to turn their attention to the looming UK VAT refund deadline on the 31st December 2022. For many European businesses that have previously claimed their UK VAT easily and electronically through the portal, this year, it’ll be more challenging.
Let’s get physical: the return to paper-based claims in the UK
As much as the world may be becoming more digitised or technologically advanced, His Majesty's Revenue and Customs (HMRC) will require physical paper claims. No need to panic, if your business is using an electronic management system to store your data, those invoices will be accepted too. On condition that they are compliant and meet the HMRC’s rules and regulations.
How to be prepared for the UK VAT Deadline
European Union (EU) businesses that are neither VAT registered or have a fixed establishment in the United Kingdom (UK) must submit their VAT refund claims. This will be processed the same way that non-EU businesses reclaim UK VAT incurred for business purposes in the UK. This excludes VAT incurred on certain expenses in Northern Ireland.
Recovering UK VAT within the specified timelines
The 31st of March 2021 marked the last day of the online portal to submit claims from your own EU member state’s tax authority. Thankfully, there is a saving grace; it just comes with a lot more work. See just how much you can claim back based on your expenses.
The UK deadline process is standard and has not had any amendments to the process as a whole. The Tax Office cut-off date to submit these claims is 31 December 2022. This deadline includes submitting all invoices from the period 1 July 2021 to 30 June 2022. If you miss the deadline, the UK authorities will not accept a late claim.
How does the United Kingdom (UK) deadline work?
Like any other VAT Authority, each country is subject to their own rules and processes. His Majesty’s Revenue and Customs (HMRC) will require the following:
- Original Invoices from suppliers
- Original Tax Certificate confirming your business activity
- Completed and signed claim documentation
- Additional administrative paperwork
- Claim limits (minimum amounts) are expected to change
The certificate will need to include your business address and registration number. The requirements for the UK to accept a foreign claimant’s tax certificate are more in-depth. On some occasions, dependent on the threshold, businesses will also need to submit proof of payments along with the original invoices. The claim can be filed yourself or an authorised agent may submit the claim on your behalf.
As a result of Brexit, EU-based businesses are now subject to the same requirements as non-EU businesses.
The European Council offers full guidance in explaining the two. However, we can confirm that the post-Brexit reclaim processes are limited to paper submissions only.
Looking back: Brexit’s effect on UK VAT Recovery
On 1 April 2021, shortly after the UK was declared no longer a member of the EU state, UK businesses lost access to the EU electronic VAT portal. Although this change has led to some interruptions in the VAT recovery process, it by no means makes easy VAT recovery a thing of the past.
Granted, these changes are intricate and difficult to understand, but it simply means that UK businesses now have to recover their VAT via an alternative process.
Don’t miss out on your VAT Reclaim opportunity
Things might have been slightly altered to the way we normally processed UK claims. However, a successful claim is guaranteed with proper planning and step-by-step guidance through the administrative process.
Download our comprehensive checklist to ensure that your business claims all VAT incurred expenses successfully from the United Kingdom.
Claimable countries & VAT rates
VAT potential calculator
Invoice compliance checklist