The Chartered Institute of Taxation (CIOT) is urging businesses to submit their claims for 2018 by 5pm on 29 March 2019, to avoid complicated administrative processes in the event of a no deal.
If the UK leaves the EU without a deal in place, UK businesses will no longer be able to use the EU VAT refund electronic system to claim their expenses.
Instead, they will have to make individual, paper-based claims to each country, taking up more time and potentially causing delays in returning the reclaimed tax.
John Cullinane, tax policy director at the CIOT, said:
“The process for reclaiming EU hotel, travel, restaurant and similar expenses incurred by UK companies is awkward in the event of a no-deal Brexit.
“There may be a stricter level of evidence needed to support the claim, depending on how individual countries decide to deal with the UK.
“This will be a nuisance to businesses in terms of administration time and likely delays in getting the VAT back.”
Speak to us about reclaiming VAT for your business.