Executive Summary Many multinational enterprises (MNEs) incur VAT in countries where they are not established or VAT registered. A business may, for example, incur foreign VAT on trade fairs and conferences, meals and accommodations, travel, transportation and fuel costs, business entertainment, marketing and advertising costs, professional services, telecommunications; printing materials and stationery, and training. Non-EU businesses that have incurred value added tax (VAT) in the UK during the 12 month period July 2014-June 2015 may be able to recover the VAT by applying for a refund - provided they comply with the rules. Claims by non-EU businesses must be submitted within six months following the end of the claim period. The closing date for applications for the above 12 month period is 31st December 2015, so taxpayers should be collecting the required information now to support a successful claim. The deadline is a fixed date, and late claims are not accepted. The fact claims are made by post and the deadline follows shortly after the Christmas holiday period needs to be borne in mind.

1. 1
UK VAT refunds for non-EU
businesses require action by
31 December 2015
Executive Summary
Many multinational enterprises (MNEs) incur VAT in countries where they are not established
or VAT registered. A business may, for example, incur foreign VAT on trade fairs and
conferences, meals and accommodations, travel, transportation and fuel costs, business
entertainment, marketing and advertising costs, professional services, telecommunications;
printing materials and stationery, and training.
Non-EU businesses that have incurred value added tax (VAT) in the UK during the 12 month
period July 2014-June 2015 may be able to recover the VAT by applying for a refund - provided
they comply with the rules. Claims by non-EU businesses must be submitted within six months
following the end of the claim period. The closing date for applications for the above 12 month
period is 31st December 2015, so taxpayers should be collecting the required information now
to support a successful claim. The deadline is a fixed date, and late claims are not accepted.
The fact claims are made by post and the deadline follows shortly after the Christmas holiday
period needs to be borne in mind.
EU 13th VAT Directive — Who can use it?
Organizations can reclaim VAT paid in the UK if they are registered for business purposes in a
non-EU country and they meet all of the following requirements:
• The organization is not registered, liable or eligible to be registered for VAT in the EU.
• The organization has no place of business in the EU.

2. 2
• The business does not make any supplies in the EU (other than transport services related to
the international carriage of goods, or services where VAT is payable by the person in the
EU to whom the supply is made).
In addition to the above, the expenses must be incurred by a business person or entity that
would be considered to be engaged in an activity subject to VAT if its activity were carried out
in the UK. For example, financial services are generally VAT exempt in the UK. A bank
established, for example, in the USA therefore, may not be entitled to a full VAT refund. This
is not always a simple issue to decide however, as it depends very much on the actual
activities that the claimant undertakes. It is recommended that a UK VAT specialist is
consulted if there is any doubt regarding this issue.
Non-refundable VAT
VAT cannot be recovered on:
 Good and services used in non-business activities
 Business entertainment
 Incorrectly invoiced VAT
 The purchase of a car
 A supply used or to be used to make a supply in the UK
Non-EU Reciprocity
It is a condition of the scheme that the claimant’s own country allows similar concessions to
UK traders in respect of its own turnover taxes. The application will however, only be refused
on these grounds if their own country has a scheme for refunding these taxes, but refuses to
allow UK traders to use it.
Claim Forms
Both quarterly and annual claims are accepted. The VAT refund process for non-EU businesses
is a paper based system. The claim form can generally be printed from the HM Revenue and
Customs (HMRC) website https://www.gov.uk/government/publications/vat-application-for-
vat-refund-by-a-business-person-not-established-in-the-community-vat65a It must be filled
in and filed together with the original paper invoices. The form needs to be completed in
English. Assistance from a UK VAT specialist may sometimes be necessary to comply with the
requirements.

3. 3
Refund Period
The period covered by the claim is known as the refund period. This must be no more than
one calendar year or less than three calendar months (unless that’s all that’s left of the
prescribed year).
Minimum Amounts
There is no maximum limit.
The minimum limits for UK claims are:
 £130 for claims for period between 3 and 12 calendar months
 £16 for claims for a whole calendar year, or the remainder of a calendar year if this is less
than 3 months
Items missed on earlier claims can be included, but they must relate to VAT charged in the
calendar year of the claim.
Required Documentation
HM Revenue and Customs (HMRC) require the original invoices showing all the VAT being
reclaimed.
When an initial claim is being made, and every 12 months after that, HMRC require an official
certificate proving that the claimant is registered as a business in its own country. The
certificate must be an original and show:
 the name, address and official stamp of the authorising body
 the claimant’s own name and address and any trading name used
 what the business does
 the business registration number
An original certificate must be provided (a photocopy is not acceptable). The certificate is
valid for 12 months and will be accepted for all claims made during that period. At the end of
the 12 months a new certificate will need to be submitted with any subsequent applications.
The certificate of status may be made on form VAT66A (copy attached) and must contain the
information shown on that form.

4. 4
Timescales
HMRC normally pay any refund due within 6 months of receiving the claim, unless more
information is needed. The original invoices will be returned when the claim has been
approved.
Payment
The refund can be paid in the following ways:
 by SWIFT (Society for Worldwide Inter-Bank Financial Telecommunications) direct to the
claimant’s own bank
 to a UK bank
 by payable order to the claimant or their agent
If SWIFT is chosen a copy of a bank credit slip should be enclosed with the claim and the
following information should be provided on form VAT65A:
 bank account number
 currency of account
 bank identification code
 bank account name
 bank name
 bank address
 all payments will be made in pounds sterling.
Refused claims
If the claim is refused HMRC will tell explain why. Examples of where claims may be rejected
by HMRC include situations where the claimant should have been VAT registered in the UK
and lack of evidence of VAT payment. If the claimant disagrees with HMRC’s decision, they
can either ask HMRC to review the decision, or appeal to an independent tribunal.
Penalties can be imposed in the case of false declarations.
For further information, please contact Gill Yates on 0845 177 5500,
gill.yates@burgisbullock.com
Offices in East and West Midlands

5. 5
Certificate of Status of Business Person
The undersigned………………………………………………………………………...
(name and address of official authority)
Certifies that………………………………………………………………………………
(name of business person)
……………………………………………………………………………………………..
(nature of activity)
………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………….
(address of the establishment)
Is a registered business person in …………………………………………………………………………
*his/her registration number is
Date………………………………………………..
(DD/MM/YYYY)
Signature…………………………………………………………
Name………………………………………………………………
Grade………………………………………………………………
* If the applicant does not have a registration number, the official authority should state the reason
for this.
VAT 66A