Continuing our series on Brexit changes, we take a look at changes to the rules for recovery of VAT incurred in the UK after 1 January 2021.
Firstly, a brief refresher. Businesses which operate in countries where they are not established, or VAT registered can often incur large amounts of VAT on expenditure in those countries. Common examples include employee hotel and travel, exhibitions, conferences, purchase of certain goods etc. Overseas business should in principle be able to recover some or all of the VAT they incur in the UK or European Union (“EU”).
At the end of 2020, the UK Brexit transition period will end. From the start of January 2021, the UK will be treated the same as any other non-EU country. This will have an impact on UK businesses incurring VAT in EU countries as well as EU businesses incurring VAT in the UK.
Source: way2vat.com
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