Bosses of Virtual Office companies in London should take note of an upcoming deadline for VAT refund requests for expenses incurred in EU in 2014.

The forms are due at the end of the month, on 30 September 2015.

VAT paid in other EU countries is often recoverable by VAT-registered businesses in the UK, who bought goods or services for business use. Several conditions which must be met in order for a claim to qualify and it is important to note that VAT incurred outside the UK is not recoverable on a domestic UK VAT return.

Claims must be made electronically via the tax authority in which the claimant is established.

A claim from a UK company to any other EU country must be submitted electronically to HMRC who will then pass the claim on to the relevant authority overseas. 

VAT registered businesses in the UK can use the scheme to reclaim the VAT paid in other EU countries if following apply:

• They are not VAT-registered in the EU country where they are making a claim and don’t have to be or can’t be registered there.

• They don’t have a place of business or other residence there.

• They don’t make any supplies there (unless they are transport services for the international carriage of goods, or the person they are supplying pays VAT on the supplies.)

There are also special rules for businesses established outside the EU submitting for a refund for VAT incurred in the UK.

The deadline for these cases during 1 July 2014 – 30 June 2015 is 31 December 2015.

Source: HM Revenue & Customs