In this section:
- Exports, supplies of goods and services overseas: charging VAT
- Imports, acquisitions from abroad: paying and reclaiming VAT
- Foreign currency transactions and VAT
- UK traders visiting other EU countries - getting VAT refunds
- Overseas traders visiting the UK - getting a VAT refund
- Distance selling into the UK from other EU countries and VAT
- Verify an EU VAT number on the European Commission website
- EC Sales Lists: completing and submitting, online or on paper
UK traders visiting other EU countries - getting VAT refunds
If you buy goods or services in other countries in the European Union (EU), you may have to pay VAT on them. You may be able to reclaim the VAT you paid in the other EU country if you're VAT-registered in your own country, and bought the goods or services to use in your business.
You can't reclaim it on your VAT Return but there's a Refund Scheme that you might be able to use to reclaim it from the other EU country. What you can reclaim depends on the other country's rules for claiming input tax.
On this page:
- Conditions for reclaiming VAT paid in other countries in the EU
- What you can and can't claim
- Imports
- Making a claim
- Claiming for the first time
- Claim forms
- Evidence needed for claims
- Payments
- If your claim is refused
- Incorrect claims
- More useful links
Conditions for reclaiming VAT paid in other countries in the EU
Anyone who's registered for VAT in an EU country can use the Refund Scheme to reclaim VAT paid in another EU country. This means that if you're VAT-registered in the UK, you can use the scheme to reclaim VAT you've paid in another EU country on goods or services you've bought for your business.
You can only use the Refund Scheme if all of the following apply:
- you're not VAT-registered in the EU country you're claiming from and you don't have to be, or can't be, VAT-registered there
- you haven't got a place of business or other residence there
- you don't make any supplies there
But if you do make supplies in the EU country, you can still use the scheme if the only supplies you make there are either:
- transport services related to the international carriage of goods
- goods and services where the person you're supplying pays VAT on them
What you can and can't reclaim
You can't use the Refund Scheme to reclaim VAT on all the goods and services you buy in other countries in the EU.
Goods and services you can't use the scheme for
You can't use the Refund Scheme to reclaim VAT on:
- goods you bring in from another EU country (these are called 'acquisitions')
- goods or services you buy for resale
When you bring in goods from another country in the EU to use in your business, these are dispatches from the other EU country. You can't use the Refund Scheme for them but they'll be zero-rated, as long as:
- your EU VAT number is shown on the supplier's invoice (for UK VAT-registered businesses, this is your UK VAT number)
- the supplier has evidence to show that the goods have been sent
Goods or services you buy for resale might include things like hotel accommodation you buy to resell to people travelling in another EU country.
Goods and services you can use the scheme for
You can use the Refund Scheme for anything else you buy for your business - but you need to keep in mind that:
- what you can reclaim depends on the other EU country's rules for claiming input tax
- the rules for claiming input tax are slightly different in each EU country
- each EU country has set a minimum amount that can be refunded
Read the rules for claiming refunds in each EU country in VAT Notice 723
Imports
If you bring in goods to use in your business from outside the EU into another EU country - these are called imports - you may have to pay VAT on the imports in that EU country. You can use the Refund Scheme to reclaim the VAT you've paid on these imports unless you either:
- get some other VAT relief when you import the goods
- are now required to register for VAT in the other EU country because of importing the goods
If you're registered for VAT in the UK you don't use the Refund Scheme
to reclaim any VAT you pay on goods you import into the UK from outside
the EU. You can reclaim the VAT as input tax on your VAT. You'll need
the import VAT certificate, form C79, to show that you've paid the import
VAT.
More
about refunds of VAT in the EU in VAT Notice 723
Find out about importing goods into the UK
Making a claim
From 1 January 2010, you will claim refunds of VAT paid in other EU countries electronically, on a standardised form through the UK Government Gateway, rather than direct to the EU country. There will also be other changes to the VAT rules for international transactions. It’s important that you consider now whether you will be affected by these changes and whether you may need to make changes to any of your software, systems or procedures.
Find out more about the forthcoming changes to the cross-border VAT rules
You can claim the refund yourself or you can ask an agent to do it for you.
Each EU country has slightly different rules for using an agent. But before they can act for you, you'll normally have to give your agent either:
- a power of attorney
- a letter of authority
How much you can claim
There's no limit to the maximum amount you can claim. But each EU country has set a minimum amount that they'll refund. The rules for claiming a refund, and the minimum amounts that you can claim, vary between EU countries. So you'll need to find out about the rules that apply to your claim.
Read about how much you can claim in a guide for overseas traders visiting the UK - getting a refund
Time limits for making a claim
You must claim your refund no later than six months after the end of the calendar year when you were charged the VAT. This is usually the date on the invoice and not the date you paid your supplier. If you miss the deadline, you won't be able to make a claim for that year. So if you were charged the VAT in April 2008, you must claim a refund by 30 June 2009 at the latest.
Your claim can't be for a period of:
- more than a calendar year
- less than three months - unless that's all that's left of the calendar year
You can include in your claim any items you missed on earlier claims so long as they relate to VAT charged in the calendar year you're claiming for.
Find out how to claim in each EU country in VAT Notice 723
Claiming for the first time
When you make your first claim for a refund - and every 12 months thereafter - you'll need a VAT 66 'Certificate of Status' from HM Revenue & Customs (HMRC) showing that you're registered for VAT. If you're claiming from more than one EU country, you'll need separate certificates to send to each one. You must send the original certificate with your claim - not a photocopy.
When you ask for the certificate, make sure it has all the information that the other EU country needs to be able to make the repayment. For example, if you use a trading name that's different from the name you used to register for VAT, the certificate should show both names.
A certificate is valid for 12 months from when it's issued, so it covers all the claims you make from a country for that year. Once it runs out, you'll need to get a new one to send with your next claim.
If you're registered for VAT in the UK and you want to claim a refund from another EU country you can get a certificate - form VAT 66 - by writing to:
HM Revenue & Customs
VAT 66 Team
Grimsby National Registration Unit
Imperial House
77 Victoria Street
Grimsby
DN31 1DB
Or you can ask for one by fax on 01472 247 388 if you're in the UK, or +44 7472 247 388 if you're outside the UK. You can also send an email.
Send an email to request form VAT 66 Certificate of Status
Claim forms
Each EU country provides its own claim form and you can get one by writing to the VAT repayment unit in the country you want to claim from. You'll find addresses for all the EU countries if you follow the link below.
The forms are available in all the official languages of the EU. When you fill one in, you'll have to use the official language and currency of the EU country where you paid the VAT.
After you've completed the form, send it to the VAT repayment unit in the EU country, together with:
- proof of the VAT you've paid
- invoices and vouchers
- your certificate of status if you're claiming for the first time, or a new certificate if your old one has expired
- any other information needed to make the repayment
Find the addresses for tax authorities in the EU in VAT Notice 723
Evidence needed for claims
When you send your claim, you must send proof of the VAT you've been charged with it. You'll need correctly completed invoices, vouchers or receipts from your suppliers showing:
- your supplier's name, address and VAT registration number
- your supplier's invoice or reference number
- your name and address
- details of the goods or services supplied
- the date of supply
- the cost of the goods or services (excluding VAT)
- the rate of VAT
- the amount of VAT charged
You should also put consecutive numbers on all your invoices, vouchers and receipts.
If you've imported goods, you must send the VAT copy of the import entry, or some other official document showing the amount of VAT you've paid.
You must send the originals of all invoices and import documents with your claim - you can't send copies.
Payments
As long as you've sent a properly completed claim form and all the information and evidence needed to support your claim, the EU country you're claiming from must pay your refund within six months of your claim.
EU countries usually make refunds by credit transfer in their own currency.
You can arrange the transfer either in the other country or in your own
country. If you have to pay bank charges on the transfer they may be deducted
from the amount of your refund.
Some EU countries will make refunds by payable order.
When you get your refund, the invoices showing that you've paid the VAT will be marked as 'cancelled' and sent back to you.
Some of the ways you can show you've taken reasonable care over your claim include:
- keeping correctly completed invoices, vouchers and receipts to support your claim and sending these in with your claim
- making sure that you have - and provide - an up-to-date certificate of status
- checking what goods and services you can claim VAT on by contacting the relevant country's VAT authority or an agent who is familiar with the rules and procedures for that country
If your claim is refused
You can help to ensure that your claim won't be refused by making sure your claim is sent in within the time limits for that country. You should make sure you take reasonable care over the completion of your claim and send all of the paperwork needed to support it.
If your claim is refused, the VAT authority in the EU country you've claimed from must give you reasons for not making a refund. You can use their appeals procedure to appeal against their decision.
The normal appeals rules of the EU country will apply to time limits, form of appeal and so on. You can't ask your own VAT authorities to help you in any way with an appeal against the decision of another EU country.
Incorrect claims
EU countries take a very serious view of incorrect or false claims and you must make every effort to ensure that your claim is complete, accurate and you've taken reasonable care when completing it. As well as recovering the overpaid amount, they may charge a penalty and stop making refunds.
More useful links
More about refunds of VAT in the EU in VAT Notice 723
Find out how to claim in each EU country in VAT Notice 723
