uk vat refund

Value added tax (VAT) is a tax which is payable on the production of most of the goods and services you buy in the UK or any country include in the European Union. You can claim for your Vat refund if you have a registered business in a non-EU country and you are buying goods from an EU company, for the production process.

Eligibility criteria:

You are eligible get a VAT return only if you fulfill the following criteria:

  • You are not VAT registered as a company in the UK and you will not be in the near future.
  • You are registered as a business in any of the non-EU country.
  • You don’t have a residence or any place in the UK where you can use your store for the in-house sale.
  • You are not involved in any kind of supplies within the EU country.

There is an exception if you are purchasing goods in an EU country. If you offer transport services related to international carriage of goods or if you are supplying goods and services to the ones who will pay the VAT, than you don’t have to pay for the VAT yourself.

Procedure of VAT refund:

You can get your VAT return by following simple steps. Fill up a form called VAT 65A and submit it to the near VAT office. You can also submit this application form online. Claims can be made by yourself or you can get the help of an agent or accountant who will then file the application on your behalf.   

Time durations for VAT refund:

You cannot claim for your Vat return at any time. There is a specific time periods in which you are able to do that. You need to claim for the refund in less than 6 months after the end of the prescribed year when you are charged with the VAT. The maximum delay can be of 6 months. The prescribed year starts from 1 July to 30 June. So, there is a need to file the refund till 31st December. After the due date, you are not eligible to claim any refund. Also, you should not claim the refund in less than 3 months unless that’s all left for the prescribed year.

Refund limit:

There is no maximum limit to get a VAT refund. According to the minimum limits of UK claims the limit for refund can be £16 for a whole calendar year or the remaining of the year if it’s less than 3 months or £130 for the claim period between 3 and 12 calendar months. A company can include the list of previous items which still needs to be refunded if they are in accordance with the current prescribed year.

The VAT refunds can be claimed only when the vendor and customer are from different countries. If the steps are followed properly then you can get the VAT return according to the rules of EU country.

Close Menu