Reclaiming VAT from EU business trips
Businesses of all sizes are stretching out across the globe. Because of this freelancers, contractors and small business owners are looking increasingly towards the EU as a potentially lucrative new market.
Keeping your financial records in order when conducting business overseas comes with its own set of challenges. Find out how to reclaim VAT on allowable expenses and balance your costs when working in the EU.
How to ensure eligibility
1. VAT refund scheme
To qualify for the refund scheme, businesses must:
- Make taxable supplies
- Not be registered for VAT in another EU country
- Avoid possessing a residence or place of business elsewhere in the EU
- Not manufacture supplies in another EU country (except in certain circumstances)
2. Deadline
Claims should not be made for a period of less than three months (unless that’s how long is left in the calendar year), or more than one year. Applications must be submitted by 30th September in the year following the EU VAT payment.
3. Transaction size
If the claim covers more than three months, but less than one year, the minimum amount businesses can claim for is €400 (approximately £336). If the claim is for a whole calendar year, or just the final part of it, businesses can claim for amounts larger than €50 (approximately £42).
How to apply
You can apply for a VAT refund by registering for a HMRC online account, then logging in to visit the VAT portal and upload your expenses information.
If you want more expert accountancy advice to help you plan your next business trip, call on the friendly team at 3 Wise Bears.
