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Deadline looming for businesses to reclaim VAT

March 2011

Businesses in the region are being urged to take advantage of a simplified way of reclaiming VAT costs before a deadline at the end of the month.

There are just two weeks left for firms to submit claims for VAT incurred from business expenditure in another EU country during 2009, such as accommodation, meals, hiring transport and fuel. But whilst this has proved long and difficult in the past, a new streamlined process is now available to help businesses do this with ease by the 31st March 2011 deadline.

Brent Goodwin, VAT Manager comments, “In the past making claims for this type of VAT has meant obtaining a form from the relevant country, completing it in the language of that country, posting it and then just waiting. Due to this difficult and laborious process many people were deterred from claiming, leaving millions of pounds of unclaimed VAT for the taxman.

"Now there is a much more straightforward process where, much like with VAT returns, these claims can now be submitted online, in English on most occasions, and can be done by the client directly or a third party such as Newby Castleman as their appointed agent. Where another language is required, the new forms use standard fields of information and codes, which greatly reduce any potential problems."

He added, "This new legislation was brought in at the start of the year but not everyone has been made aware of it. It means that businesses in the region who have been charged VAT in other EU member states during 2009, whether due to visiting suppliers or customers or attending an exhibition or conference, could in fact recoup this money, rather than having to write it off."

"What's more, a deadline for the repayment of accepted claims has been set at four months and 10 days whereas it is no exaggeration to say that under the old system, some countries were known to take closer to four years to make a repayment!"

Minimum applications do apply for firms thinking of making a claim. For periods of less than one year but not less than three months, the minimum amount claimable is £400. If the claim relates to a whole year or the remainder of a year, it must be at least £50.

Businesses wishing to find out more information about making a claim can contact Brent Goodwin on 0116 254 9262