2012 EU VAT Recovery deadline on 30 September 2013

Mon 19th Aug 2013

For the vast majority of businesses that have incurred foreign European Union Value Added Tax, the deadline for submitting reclaims will be 30 September 2013.

Reclaiming EU VAT

For companies buying certain goods and services in a foreign EU country, they may incur EU VAT at rates varying between 15% and 27%.  They will be unable to recover this VAT through their own domestic VAT returns as the EU VAT regime is not harmonised.

They may instead reclaim the EU VAT be submitting quarterly VAT reclaims with the tax authorities.  This may be done four times at the end of each annual quarter.  The final, fifth year end claim may be submitted on the 30 September in the year following the date of the invoice.  So 2012 invoices must be submitted in the final claim, due 30 September 2013, to reclaim the VAT.

Non-EU companies face a different regime, and should submit the final claim by 30 June of the year following.

What costs may the EU VAT be reclaimed on?

Claims may be made for business related costs such as hotels and travel.  This includes taxis, telephone costs.  Overseas conference and live event organisers who were not VAT registered in the country of the event should also follow the same regime to recover the VAT.

What is required to recover EU VAT

Companies will have to have the original invoices, although they do not need to be sent in with the claim.  They will also need proof of their VAT registration at home, or tax status if they are non-EU.