Making a VAT claim from both HMRC and overseas tax authorities

Key points

• An overseas VAT claim can only be made in most cases if the UK regulations also allow businesses in that country to reclaim VAT from HMRC.
• A UK business seeking to claim VAT paid in an EU country must now submit a paper application claim to the tax authorities in that member state.
• UK businesses may not realise they have a liability to register and account for VAT in an EU country if they buy and sell goods there.
• Strict checking processes – due to the potential for fraudulent claims – can create obstacles for genuine claimants.

Is it a waste of time if a UK business seeks to reclaim VAT – or its indirect tax equivalent – paid in another EU or non-EU country? And what is the situation if you act for an overseas business that pays UK VAT and it wants to reclaim it from...