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Get your VAT back on overseas business trips

Overseas business trips

At some time most businesses send staff on sales trips or to attend exhibitions in other EU member states. All of these countries have a VAT system so you will be incurring VAT costs that you can’t claim back on your UK VAT return.

Example. Your business has attended a five-day trade fair in Paris and hired a sales stand at the exhibition. You sent over four members of staff and when you look at the bills you notice that you’ve been charged French TVA on the hire of the stand, the hotel accommodation and on meals out. In total the VAT comes to over £1,000. How do you get it back?

How to make a claim

A new electronic refund system replaced the old paper based system, known as 8th Directive refunds, on January 1 2010. This system is simpler and quicker than before. There’s an extended period of nine months (previously six months) in which to submit claims for VAT incurred in the preceding calendar year.

Note. In the first year, due to some teething problems, the time limit for submitting claims was extended by a further six months to March 31 2011.

Minimum claims. If the claim relates to a period of less than one year but more than three months, it must be for at least €400 or equivalent. If the claim relates to a whole year or the remainder of a year, it must be for at least €50 or equivalent.

How often? You can make a maximum of five claims to each member state per year - essentially one per quarter, plus a final sweep-up claim to capture any invoices not previously claimed.

Tip. You don’t have to make quarterly claims. For example, it’s possible to make two six-month claims or one twelve-month claim. Claims may not, however, be made for a period of less than three months (unless for the remainder of a year).

The detail

To make a claim you have to register on the UK portal via the Government Gateway (seeThe next step). You will need to record some basic details, e.g. name, address, VAT number, bank account details. This information will be stored and automatically transposed onto the individual claim forms for each member state as each claim is made. The use of standard fields and codes for information in the new electronic refund system has greatly reduced language problems, and where text has to be employed, the use of English is permitted.

Time and appeal. Once the VATman in the other member state receives the claim, it must be processed within four months and, if approved, repaid within ten working days. If further information is requested, the processing period can be extended up to a maximum of eight months. If these time limits are exceeded, then interest will be paid. In the event that a claim is refused, in whole or in part, the decision can be appealed. Guidance on appeal procedures in each member state is available from the VATman.

For more information on how to make a claim, visit http://vat.indicator.co.uk (VA 01.06.02).