EU VAT Brexit warning
The Chartered Institute of Taxation (CIOT) has urged UK businesses to claim any local VAT incurred in the EU before the 29th March 2019. If they don’t, they’ll need to follow the paper process for each country, rather than use the existing electronic EU VAT refund system.
Additionally, the cut-off dates for this system may well differ by country. France and Luxembourg have said that EU VAT reclaims under the EU refund process will cease on 28 February 2019. Belgium has given a final date of 29 March 2019.
John Cullinane, Tax Policy Director at CIOT, said: ‘Businesses should act now if they have to claim back VAT on expenses from working in the EU to ease any potential impact on their administrative time and cash flow after Brexit Day.
Instead of the current simplified online claims process with HMRC, recovery claims will be paper-based with separate applications to each EU country.
There may be a stricter level of evidence needed to support the claim, depending on how individual countries decide to deal with the UK.’
There are still many areas of doubt around Brexit, and the implications of the UK leaving without a deal. We will pass on as much information and advice as we can in the coming weeks.
Do you have a particular Brexit concern?
Do get in touch and let us know. If we can give or find you an answer we will, otherwise we’ll come back to you as soon as more information is released.