0161 883 2120

VAT overseas and overseas VAT refunds

VAT overseas issues

From differences in local VAT legislation to evolving international VAT overseas reporting trends, if you trade outside of the UK you will be subject to ongoing change. As many countries operate a system equvialent to VAT, often referred to as Goods and Services Tax (GST), this may result in new requirements for invoicing, VAT registrations and VAT reporting obligations in those countries.

In considering the question do I have to charge VAT to overseas customers you will need to establish a number of factors such as the place of supply.  For example, is it within the EU or outside the EU?

HMRC guidance in relation to overseas VAT on services is also available.

Different rules are likely to apply if you supply goods compared to if you supply services in any particular country.

A general dynamic business environment combined with your own business growth and internal structural shifts mean that you need a robust guide to help all business functions navigate their way through overseas VAT changes.

Overseas VAT review masterd

A review of overseas VAT can be tailored to meet the particular requirements of your business, creating clear and comprehensive guidance, helping you to:

• Understand all current VAT and GST obligations
• Understand how external changes and new reporting trends may impact your supply chain e.g. Brexit, Quick Fixes, Digitisation (MTD, SII, SAF-T)
• Easily implement and correct tax codes in your ERP systems
• Minimise risk and avoid fines and penalties
• Improve cash flow
• Obtain overseas VAT repayments
• Identify VAT savings and efficiencies

Overseas VAT advice

Solve VAT brings together the deep complexity of VAT overseas, enabling businesses to trade confidently not only across Europe but with countries such as Australia, South Africa etc. We bring together highly experienced VAT consultants and VAT compliance experts and if need be country by country VAT specialists. Combined with our leading VAT compliance technology, our dedicated processes allow us to put the full power of that VAT expertise behind your business’ VAT registration, and explains VAT reporting needs to ensure that they are mastered.

Refunds of overseas VAT from countries in the EU and EEA

The EU operates what is called the “13th Directive Reclaim” scheme. This is available to UK VAT registered businesses that have incurred VAT in most of the European Union (EU) and the European Economic Area (EEA). Prior to considering submitting a claim you may wish to take into account the following points of information:
  • A maximum of five claims can be made in the claim year.
  • The claim year is usually 1 January to 31 December each year, but some EU member states operate different dates (e.g. Cyprus has a claim year that runs from 1 July to 30 June each year).
  • You only have six months from the end of the claim year to submit the claim (the “claim period”).
  • There is a minimum claim value of €400 VAT, and a minimum period of 3 months. This reduces to €50 VAT if the claim is submitted in the last two months of the claim period.
  • The claim is usually paper based and will often need to be posted or couriered to the tax authority concerned.
  • Original invoices are usually required but will be returned once the claim is verified (we suggest that you make sure you take a copy of any invoices before you send them off).
  • The form may be required to be completed in the language of the country you are claiming from.
  • You may need a tax representative in the country to submit the claim on your behalf (over half of member states require a tax representative for anything to do with VAT).
  • You must not be carrying out any business in the country and you must not be otherwise registerable in that country.
  • The VAT that can be claimed is based on the invoicing rules for the supplier’s country and also on its reclaim rules. For example, not all member states allow invoices to be in employee names or some member states do not allow the VAT on hotel accommodation, transport or subsistence to be claimed whereas others do allow such claims.
  • Incorrect claims could lead to penalties.
  • There is no requirement for the country to pay interest if it takes a long time to verify your claim.

Contact

Phone Solve VAT and speak to a dedicated VAT specialist on 0161 883 2120 to discuss any overseas VAT query or any other VAT matter without obligation.