VAT Implications of Selling in Europe

Due to the fall in the exchange rate, we have received a number of product orders from Europe, particularly countries from the European Union. We are considering attending a number of trade fairs and would like to know whether we can claim the equivalent VAT we paid various state of the EU on our UK VAT return?

1st May 2009

Only VAT charged by UK companies can be claimed on your UK VAT return. In order to claim the VAT paid in various member states, you will have to submit a claim form in the country that you incurred the expense. A special form must be completed in the particular countryís language, and it must be submitted with the original invoices. There is a useful H.M Customs & Excise booklet, VAT Notice 723 that covers the procedures.

If you are dealing with a number of EU countries, you may find it advantageous to register in one of them and thus, subject to certain conditions, claim back the VAT for all the countries. You need to be aware that the countries involved do have differing rules for when VAT can be claimed, and notice 723 will give you further guidance.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Call us today to make an appointment at your local office

0800 0523 555

Or submit an enquiry