The UK tax authority (HMRC) has announced changes to the way UK businesses can reclaim VAT they have paid in the EU, and similarly how EU based businesses can reclaim VAT they have paid in the UK.
The existing arrangements to use the EU VAT refund system will end on 31st March 2021. Up until that date businesses in the EU and the UK will be able to use the system to make claims for refunds of VAT paid before 1st January 2021.
Claims for refunds of VAT paid on or after 1st January 2021 will have to be made manually to the tax authorities in the individual countries concerned. These claims cannot be made until 1st April 2021.
