The changes in the UK VAT refund process

Since Brexit, transport operators doing business in the United Kingdom have to do with More challenges in the field of VAT recovery. The process has changed after leaving the UK from the EU and thus the accessibility reduced. In this article we explore the complexity of the recovery process, the difficulties in obtaining access and the potential disadvantages for transport operators wishing to recover English VAT.

The process has changed after leaving the UK from the EU and thus reduced accessibility.

After the Brexit, EU countries must submit their English VAT refund via a specific English portal. In order to gain access to this tax portal as a company, a application must be made via the English tax administration.

until registration. For transport operators wishing to recover UK VAT, it is important to understand the procedural differences under the 13th Directive. Unlike claims under the 8th Directive, a claim under the 13th Directive covers a specific 12-month period. In the UK, that period runs from 1 July to 30 June of the following year. The deadline for submitting this refund claim is six months after the end of that claim year. This means that VAT from 1 January to 30 June 2022 can no longer be reclaimed, while the second half of 2022 and the first half of 2023 could be declared until 31 December 2023. The threshold also deviates.

The threshold is the minimum amount requested by the VAT refund. Once the amount is below the minimum amount, the refund application is rejected. Previously, a uniform threshold existed for all EU countries, but these thresholds may vary from country to country (see earlier Delta article). The threshold is 130 UK pound per quarter (± €150) and 16 UK pound per year (± €20). Although the recovery of English VAT from EU countries after Brexit is challenging, the understanding of the complexity, compliance with the procedures and the involvement of right expertise transport operators offers the opportunity to successfully recover VAT and the minimise financial impact. But above all, it would be a shame to abandon VAT for not knowing the rules or not respecting deadlines.