New reduced deadline for refunding VAT paid in 2020 in the UK

With respect to the current situation in the field of BREXIT and the approaching date of 31.12.2020, when the transitional period for Great Britain will definitively end, fundamental changes will  take place from the point of view of tax and customs legislation. The United Kingdom will thus leave the EU definitively, as a result of which it is necessary for taxpayers trading with this country to be prepared for the application of the new legislation.

At the same time, it is necessary to draw attention to the new deadline regarding with the application for a tax refund, which will be applicable to those taxpayers who purchased goods or services from the UK during the 2020 tax period, paying foreign VAT and request to obtain back the paid foreign VAT (so-called VAT refund request).

In the case of the United Kingdom, the standard deadline for submitting a tax refund application is postponed from 30.09.2021 (the calendar year following the end of the calendar year for which the taxpayer claims the VAT refunded back) to 31.03.2021.

A refund application is submitted by a foreign person from another Member State electronically via the electronic portal of his Member State (ie the Member State in which the foreign person has his registered office, place of business, establishment, residence or usually resides).

At the same time, based on the principle of reciprocity, a foreign person from another EU member state can similarly apply for a refund of Slovak tax, which he paid when buying goods and services in the country (SR), or when importing goods into the country after meeting certain conditions.

Thus, the applications for a refund of VAT applied to goods and services in the United Kingdom within the period from 01.01.2020 to 31.12.2020, respectively for part of this period, can be submitted electronically by VAT payers established in the Member States, no later than 31.03.2021.

The same time period for claiming of VAT refund is applicable also to those VAT payers who are established in the United Kingdom and  paid foreign VAT for the respective period in another Member States .

In case of further questions related to BREXIT, do not hesitate to contact your contact person in VGD or directly to our experts from the tax department.
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