If your business reclaims VAT on expenses from working in the EU, it would be wise to action any outstanding claims now to alleviate any repercussions, including additional administration and increased costs post Brexit Day.

All claims using the EU VAT refund electronic system to submit a refund claim for 2018 will need to be made by 5pm on 29 March 2019. Claims submitted after this date will not be sent on by HMRC to the relevant EU member state, instead businesses will be required to adhere to each country’s individual process.

John Cullinane, Tax Policy Director at the Chartered Institute of Taxation, 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. Instead of the current simplified online claims process with HMRC, recovery claims will be paper-based with separate applications to each EU country. 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 business in terms of administration time and likely delays in getting the VAT back.”