This guide provides an overview of VAT in the UK, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within the UK.
was the year the UK introduced VAT, replacing the old “Purchase Tax.”
Foreign businesses incurring expenses in the UK? You might be eligible for a VAT refund.
Doing business in the UK? You’ll need to play by the IVA’s VAT rules.
Registration is only required for businesses above the threshold.
The UK applies VAT on digital services based on the consumer’s location, and registration is mandatory for non-resident businesses providing digital services to UK customers.
Eligible expenses include accommodation, food, drink and restaurant services, some local transport and admission to fairs and exhibitions. The reclaimable amount depends on the applicable UK VAT rate and whether the business meets UK VAT registration requirements.
Processing times for a UK VAT refund varies, but businesses reclaiming VAT in the UK can expect it to take anywhere from a few months to a year, depending on the claim complexity and submission accuracy.
Tax authorities may request original invoices however due to digital submission method, scans of invoices are allowed in most cases.
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