A VAT refund guide to United Kingdom

How to get VAT Refunds from United Kingdom for your business
If your business is registered outside of the United Kingdom, you may be eligible for VAT refunds on costs accrued in the UK.
The below information details the requirements needed to be eligible for a VAT refund. This includes claimable expense types, United Kingdom VAT rates, deadlines and claiming periods.

Which countries have reciprocity with United Kingdom?

Eligible claiming countries are determined by reciprocity.

Learn more about how reciprocity works within VAT by clicking below.

What expenses are claimable in United Kingdom?

Entertainment

Events

Entertainment
20%
Admission to Fairs & Exhibitions
20%
Accommodation
20%
Training Courses & Seminars
20%
Food, Drink & Restaurant Services
20%

Travel Related

General Expenses

Hiring of Means of Transport
20%
Goods
20%
Fuel
20%
Inter-company Charges
20%
Public Transport
0%
Office Expenses
20%
Taxis
20%
Marketing Costs
20%
Professional Fees & AP Invoices
20%

Additional Information

Current VAT Rate  20%
Categories Entertainment, Events, Travel Related, General expenses
VAT in local language Value-added Tax (VAT)
VAT number format GB 123456789 (GB followed by 9 digits)
Exemptions Public Transport
Key Deadlines 31st December within 6 months after the end of the 12-month claim period (1 July to 30 June)
Threshold

Non-Simplified: More than GBP 250 (including VAT)

Simplified: GBP 250 or less (including VAT)

Super Simplified: Not applicable to this VAT scheme

Electronic Invoicing Currently, electronic invoicing is not mandated

Frequently Asked Questions

1. What types of business expenses qualify for VAT reclaim in the UK?

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.

2. How long does it take to receive a VAT refund in the UK?

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.

3. Do I need original receipts and invoices for VAT reclaim in the UK?

Tax authorities may request original invoices however due to digital submission method, scans of invoices are allowed in most cases.

4. Can I reclaim VAT in the UK on business travel expenses like flights and taxis?

Flights are generally not VAT-taxable, but local transport costs such as car rentals, taxis, and train tickets may be eligible for a UK VAT refund, depending on the UK VAT rate and specific regulations.

5. Is VAT reclaim available for trade shows, conferences, and business events in the UK?

Yes, businesses can reclaim VAT on event registration fees, exhibition costs, and booth rentals. The amount refundable depends on the UK VAT rate and whether the business has UK VAT registration.

6. Can VAT be reclaimed on meals and entertainment in the UK?

VAT on meals (food, drink and restaurant services) is often only partially reclaimable for employees, while entertainment expenses are generally non-reclaimable.

7. What is the deadline for submitting a VAT reclaim application in the UK?

Deadlines vary, but claims for a UK VAT refund typically must be submitted within 6 months to 1 year of the expense date, depending on UK VAT registration status.

8. What happens if a supplier incorrectly charges VAT on an invoice in the UK?

If VAT is applied incorrectly, businesses may need to request a corrected invoice from the supplier before claiming a UK VAT refund. VAT IT can assist with this service, including checking UK VAT validation to ensure supplier VAT numbers are accurate and compliant.

9. Are there any minimum spend thresholds for VAT reclaims in the UK?

Yes, some jurisdictions require a minimum VAT amount before processing a UK VAT refund. The threshold varies.

10. How does UK VAT registration work for domestic and foreign businesses?

Businesses exceeding the annual turnover threshold must complete UK VAT registration with HMRC. Domestic companies must charge VAT on taxable sales, while foreign businesses selling in the UK may also need to register. The UK VAT rate varies by product type, and registered businesses can apply for a UK VAT refund on eligible expenses.

11. What is UK VAT validation, and how can I check a VAT number?

UK VAT validation is a process of verifying that a VAT number is active and correctly registered with HMRC. Businesses can verify VAT numbers using the VIES system or HMRC’s online tool. Proper validation is essential for VAT compliance and claiming a UK VAT refund, ensuring transactions align with the correct UK VAT registration details.

Explore VAT reclaim opportunities in

Nearby Countries

Ireland
Ireland
France
France
Belgium
Belgium

Need help with your VAT refund from United Kingdom?

You don’t have to do this alone. We’ve been helping companies reclaim foreign VAT refunds for over 20 years. We have the knowledge and technology to process your refunds quicker as well as attend to any unforeseen VAT authority queries that may arise.

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