How to recover VAT in the UK after Brexit

In light of Brexit, all EU companies will need to change the way they recover input VAT in the UK when they are not VAT registered.

Applying for a VAT refund in the UK after 2021

Input VAT incurred in 2020 in the UK can be recovered through the usual way until 23:00 on 31 March 2021. From that moment on, EU companies will have to follow a different procedure in accordance with British rules.

For claiming back VAT incurred on or after 1 January 2021, HMRC declared that EU companies will no longer be able to electronically submit their refund claims via their local tax authorities as before. Instead, they will have to follow the same processes set by the British government for non-EU established businesses. These claims can be made starting 1 April 2021 through the 13th Directive. In order to qualify, it is important that the business is not already VAT registered in the UK and has not carried out any taxable transactions there. You can find more information about this procedure here.

Transition period to claim back VAT incurred in the UK during 2020

As per rules for non-EU businesses, EU businesses should complete the VAT65-A Form no later than 6 months after the “prescribed year” (from 1 July to 30 June) ends. In this regard, claims must be made no later than 31 December. This form should be submitted with supporting documents, such as original invoices issued, as well as an official certificate that proves your business is registered in your home country. The original invoices will be returned upon approval of the claim, and a new official certificate will be needed every 12 months.


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