Brexit and VAT refund

14 March 2019
Article

As it seems, the UK will exit the EU on 29 March. It may be a “no-deal Brexit”. If not, a VAT issue is at hand, which can be best dealt with before 29 March 2019

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Written by:
Vincent Wanningen Senior tax advisor
People on money of VAT return

Entrepreneurs which do business in the UK, may incur local expenses charged with UK VAT. This VAT can be refundable. In order to obtain the refund of the UK VAT (charged in the previous year) , each year an electronic VAT refund procedure can be done before 29 September with the tax authorities of the specific Member State of which the entrepreneur is a resident (i.e. the Netherlands). As a consequence of a (possible) no-deal Brexit, the refund procedure should be done before 29 March 2019 (instead of 29 September) . This is for UK expenses incurred in 2018.

After 29 March 2019, and a no-deal Brexit, normal or other rules will apply which may be an issue for the term and procedure to reclaim UK VAT. This could take a (very) long time or other requirements may be demanded for your refund since the refund procedure is no longer based on EU regulations, but on domestic (UK) regulations which may become different.

More information

Would you like more information? Our specialist will gladly assist you. You can contact Vincent Wanningen, senior taxspecialist at ABAB International, on 013-4647209 or e-mail Vincent.

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