Did you know that businesses who incur overseas VAT costs to carry out trade such as travel, subsistence, transport hire, road tolls and admissions to exhibitions (to name a few), and who are not VAT registered in that member state, can reclaim VAT subject to certain conditions?
With the claim deadline of 30 September fast approaching, PM+M is urging all internationally operating business clients to act quickly and seek advice from our VAT manager, Alison Brown, if they think they may be eligible.
Claims must be submitted to the member state of establishment (through HMRC’s VAT 65A form) – in the case of EU businesses, by no later than 30 September for the 12 months to 31 December following the refund year. Non-EU businesses (which could include the UK following Brexit on 31 October) have a deadline of 6 months from a ‘prescribed year’ (1 July to 30 June), so claims must be made by no later than 31 December for the 12 months to 30 June.
Once a claim has been made, member states have to approve or refuse the application within 4 months, meaning that if successful, businesses could witness the reclaim taking place before 2020.
It is worth noting that there is no leeway on the above deadlines so it is essential for businesses to plan early and seek professional advice to streamline the process and achieve maximum value from their claim.
The claim process is rigorous and as a result, many businesses are often discouraged from making a claim, typically leading to profit reductions or tender prices being higher than the competition. This shouldn’t be the case – PM+M is happy to offer support and guidance in helping you submit a claim to optimise your VAT recovery and ultimately, achieve more for your business.
For more information about how we can help you, please get in touch with our VAT specialist, Steven Cosgrove, using the details below.