UK VAT Refunds for Overseas Business

Can overseas businesses reclaim UK VAT?

Yes! 

They may be eligible to reclaim UK VAT incurred on goods and services for business use in the UK.  However, strict rules and deadlines apply, and notably any claim covering the 12-month period to 30 June 2025 must be submitted to HMRC by 31 December 2025.

There are number of conditions that must be considered, including:

• Eligibility: Your business must not be registered, liable, or eligible to be registered for UK VAT, and must have no place of business or other residence in the UK. You also must not make any supplies in the UK, except for certain limited exceptions.

• Reciprocity: Your home country must offer similar VAT refund arrangements to UK businesses.

• What can be reclaimed: VAT on goods and services purchased in the UK for business use, and import VAT, provided you are the owner of the goods and not required to register for UK VAT as a result of the import.

• What cannot be reclaimed: VAT on business entertainment, most business cars, goods/services for non-business use, and supplies used to make exempt supplies outside the UK, among others.

Claims received late will not be accepted, so it’s crucial to prepare your documentation and submit your application in good time.  There are some strict guidelines of what must be included in submission – so this would be very difficult if left as a last-minute exercise.

We have experience assisting clients with such claims, so if you or your clients are interested in making a claim, please talk to your usual VAT contact.

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