When you incur VAT on business expenses in other EU countries, you mustn’t reclaim that VAT on your UK VAT return. However, if your business meets the following conditions it can reclaim the overseas VAT through HMRC’s VAT online services system:
- it must be registered for VAT in the UK;
- it must not be registered for VAT (or liable to be registered) in the country where the expenses were incurred;
- it must not have a place of business, fixed establishment or other residence, in that other EU country;
- it must not make supplies of goods or services in that EU country, except for transport services or services where the recipient pays the VAT.
You can claim for each complete quarter, if the refund claimed is €400 or more, or claim for the whole calendar year, if you are reclaiming €50 or more. These thresholds may vary in
different countries. The deadline for submitting a
claim for VAT incurred in
2016 is 30 September 2017; claims made after that date will not be accepted.