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Repayment of VAT to overseas businesses

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Revenue & Customs Brief 10/2021 sets out the actions HMRC is taking to enable overseas businesses (not established in the EU) to claim UK VAT refunds, where the businesses have found difficulties acquiring certificates of status. The guidance covers the year 1 July 2019 to 30 June 2020.

Overseas businesses which incur VAT in the UK for business purposes can reclaim the VAT using the overseas VAT refund scheme. Businesses were required to submit their application for refunds together with a certificate of status on or before 31 December 2020. Although the deadline to submit the certificate was extended to 30 June 2021 (Revenue & Customs brief 20/2020), HMRC is aware that businesses are still experiencing difficulties – largely due to measures taken in response to coronavirus. HMRC has therefore agreed a further six-month extension for submissions of a valid certificate of status. This means the certificate of status must be submitted on or before 31 December 2021.

The extension does not affect the requirements for the year 1 July 2020 to 30 June 2021. This means that the deadline for that period is also 31 December 2021, although HMRC notes that ‘all certificates provided to HMRC throughout 2021 will remain valid for claims in the prescribed period 1 July 2020 to 30 June 2021’.

Issue: 1539
Categories: News