Today 25 January 2019, the French Tax Administration published an official notice regarding the Brexit and its implication on the VAT refund process. Two things will be affected: the procedure and the deadline!
According to the current state of negotiations between the EU and the UK, Brexit could be effective on 29 March 2019; the electronic VAT refund procedure in the European Union is subject to change. If there is no agreement on the United Kingdom’s exit from the European Union between the 28 Member States by 29 March 2019, the VAT refund procedure will be modified.
1. New deadline and change of procedure in case of “no deal”
Thus, your company needs to file a VAT claim in 2019 for expenses incurred in the United Kingdom in 2018, it must be done via the electronic VAT refund procedure (current EU to EU claim process) before 29 March 2019, instead of 30 September 2019. However, it is strongly recommended that you submit your claims before 28 February 2019 on the French portal.
From 30 March 2019, VAT claims may no longer be submitted via the French portal in the United Kingdom and must be submitted directly to the United Kingdom authorities in accordance with the procedures laid down by the United Kingdom. Therefore, the procedure would be the same than any other claim submitted from a non-EU country to the UK. The VAT claims linked to the UK will no longer be tracked from the French portal as of 30 March 2019.
These changes only affect the procedure linked to the UK and not the other EU Member States.
2. The situation in case of reaching an agreement
If an agreement on the United Kingdom’s exit from the European Union is finalized between the 28 Member States by 29 March 2019 or if a postponement of this exit is decided, no change in your procedures for refunding VAT Claims incurred in the United Kingdom would be immediately expected.
3. Recommendation to VAT4U customers
Knowing the uncertainty level regarding the Brexit negotiation, VAT4U recommends our customers to urgently submit on our portal their VAT refund claims linked to the UK before March 2019 to be on the safe side. We also recommend making sure your company is able to provide original invoices & receipts from any expense that will be submitted in VAT claims after 30 March 2019.
Do you have more questions regarding Brexit and VAT recovery?
Please, do not hesitate to contact us: