Refunds of UK VAT for non-UK businesses (VAT Notice 723A)

This notice applies to supplies made on or after 1 January 2021.

Find out about supplies made in Northern Ireland.

1. Overview

1.1 What this notice is about

This notice explains how businesses established in countries outside of the UK can reclaim VAT incurred in the UKUK. andIt also explains that UK and Isle of Man businesses can claim a refund of VAT incurred abroad.

1.2 Laws that cover this notice

The UK law:laws that cover this notice are:

• Value Added Tax Act 1994, Section 39
• VATValue Added Tax Regulations 1995 (SI 1995/2518) Parts 20A and XXI
• TheValue VATAdded Tax (Miscellaneous and Transitional Provisions, Amendment and Revocation) (EU Exit) Regulations 2020 (SI 2020/1495) Part 3

1.3 Isle of Man

For VAT purposes, the Isle of Man is treated as part of the UK. VAT is chargeable in the Isle of Man under Manx legislation, which is broadly similar to UK legislation. The schemesscheme described in this notice applyalso equallyapplies to refunds of VAT incurred in the Isle of Man. Any references to the UK in this notice are to be taken to include the Isle of Man.

2. Refunds of UK VAT for businesses established outside the UK

2.1 What this scheme is for

IfYou you’remay registeredhave forto businesspay purposesUK inVAT aif countryyou’re outsideregistered thefor UKbusiness purposes abroad and you buy goods or services in the UK,UK. you may have to pay UK VAT. This needdoes not happenapply if you buy goods for export, but it may apply if what you buy is used in the UK. For example, if you take part in a trade fair.

IfYou you’recannot nottreat registeredthis for VAT inas theinput UKtax youif cannotyou’re treatnot thisregistered for VAT asin inputthe tax,UK. butYou you may be able to use this scheme to reclaim VAT charged on on:

• imports into the UK or
• purchases of goods and services used in the UK.

  For VAT purposes the Isle of Man is treated as part of the UK. VAT is chargeable in the Isle of Man under Manx legislation which is broadly similar to UK legislation. This scheme applies equally to refunds of VAT incurred in the Isle of Man. Any references to the UK in this notice are to be taken to include the Isle of Man.

2.12.2 Who can apply

If you’re registered for business purposes in a country outside the UK, you may use the scheme to reclaim VAT paid in the UK. You can do this if you meet thesethe 2 following conditions:

• you are not registered, liable or eligible to be registered for VAT in the UK,UK you’ll— find more aboutinformation this in NoticeWho 700/1: who should register for VAT (VAT Notice 700/1) .
• you have no place of business or other residence in the UK and do not make any supplies in the UK (other than transport services related to the international carriage of goods, or supplies where VAT is payable by the person in the UK to whom the supply is made)

It is a condition of the scheme that your own country allows similar concessions to UK tradersbusinesses in respect of its own turnover taxes. Your application will only be refused on these grounds if your own country has a scheme for refunding these taxes but refuses to allow UK tradersbusinesses to use it.

If you are an EU business and your claim relates to VAT on expenditure incurred on goods only in Northern Ireland, read how to claim VAT refunds in Northern Ireland or the EU, if you’re established in Northern Ireland or in the EU.

2.22.3 Goods and services you can and cannot reclaim VAT on

During the refund period you can claim UK VAT on:

• goods and services purchased in the UK
• goods imported into the UK

You cannot use the scheme to reclaim VAT on:

• goods and services used for non-business activities,activities but— if a supply covers both business and non-business use, VAT can be reclaimed on the business element of the supply only
• any supply used or to be used to make a supply in the UK
• the supply or importation of most ordinary business cars,cars — only 50% of the VAT incurred on the hire of lease of a car for mixed business and private purposes is allowed
• certain second-hand goods, like cars and antiquesantiques, for which no taxVAT invoice will be issued
• business entertainment or hospitality expenses,expenses as— an exception, VAT on entertainment for overseas customers may be reclaimed but only if it is of a very basic nature
• export of goods,goods (whether direct or indirect), but these willmay be zero-rated, provided the supplier has the necessary evidence — find more information in VAT on goods exported from the UK (VAT Notice 703)
• goods and services,services like hotel accommodation, you have bought for resale which are for the direct benefit of travellers — fore example, hotel accommodation
• any supply usedused, or to be usedused, to make an exempt supply outside the UK (for this purpose an exempt supply is a supply described as exempt in Schedule 9 to the VATValue Added Tax Act 1994, whether or not the place of the supply is in the UK)
• goods in Northern Ireland that couldcan be claimed under the process for claiming VAT incurred in Northern Ireland Protocol

There is also a VAT Retail Export Scheme which allows non-EU visitors a refund of VAT on certain goods that they buy in Northern Ireland. For more details of the Schemescheme, seeread guidance on the Retail Export Scheme (Northern Ireland) — Notice 704..

2.32.4 Partial exemption

In most cases, where goods and services are used to make both taxable and exempt suppliessupplies, you can only recover VAT to the extent that they are used to make taxable supplies. For furthermore informationinformation, read NoticePartial 706:exemption partial(VAT exemptionNotice 706).

2.42.5 VAT paid on imports

If you’re importing goods into the UKUK, you can reclaim any VAT due,due providedif there is no other VAT relief available at import. But you’ll not be able to use the scheme if, as a result of importing the goods, you become liable to register for VAT in the UK.

Import VAT may only be claimed by the owner of the goods. For VAT purposes, ownership means you have ‘the right to dispose of goods as owner’.

Find out about paying VAT on imports from outside the UK to Great Britain and from outside the EU to Northern Ireland.

2.52.6 VAT groups

When VAT is incurred by businesses who receive VAT group treatment, the representative member of the VAT group must apply on behalf of all the members. As the supporting invoice produced may not be addressed to the representative member, the certificate of status must also contain the names of the group members who incurred the VAT (read section 2.11).

2.7 Time limits for making an application

You must make any claim no later than 6 months after the end of the ‘prescribed year’ in which you incurred the VAT.

The prescribed year is the 12 months from 1 July to 30 June of the following calendar year, so you must make your application no later than 31 December.

To ensure fair treatment for all claimants, applications are dealt with on a ‘first come, first served’ basis and the time limit is applied strictly.

2.8 Claim limits

There is no maximum amount you can claim, but the UK has set minimum claim amounts that can be refunded.reclaimed.

Your application should cover any VAT you’re reclaiming over a period of at least 3 months but not more than the full prescribed year.

When your application is for a period coveringof less than 12 months, the total amount of VAT claimed must not be less than £130.

The application can cover less than 3 months if this is all that remains of the prescribed year. In that case, or when the application is for the full 12 months of the prescribed year, the amount of VAT claimed must not be less than £16.

You can also include items missed on earlier applications as long as they related to VAT charged in the year of the application.

2.6 Time limits for making an application

You must make any claim no later than 6 months after the end of the ‘prescribed year’ in which you incurred the VAT.

The prescribed year is the 12 months from 1 July to 30 June of the following calendar year, so you must make your application no later than 31 December.year.

To make sure fair treatment for all claimants, applications are dealt with on a ‘first come, first served’ basis and the time limit is applied strictly.

2.72.9 How businesses established outside the UK can claim refunds of UK VAT

2.7.12.9.1 Electronic submission of claims

You can now submit claims electronically using HMRC’s Secure Data Exchange Service (SDES)). system.This The system is optional and there are no immediate plans to make it mandatory.

The SecureSDES Data Exchange Service is currently being tested. It is available to businesses and agents to make claims, but during the testing period you will need to email newcastle.oru@hmrc.gov.ukthe Overseas Repayment Unit (ORU) to request access.access (read paragraph 2.9.2).

WhilstWhile the service is being tested, there may be times when we need to stop it without notice. If we need to stop the service, wewe’ll will tell you by updating our online guidance to let you know how to submit your claim. If we stop the service, this will not affect the claims that have already been submitted through it.submitted.

If you want to submit an electronic claim aheadbefore of the 31deadline Decemberon deadline,31 December, you must apply to register on or before 30 November to enableallow us to successfully put you onto the system.

IfIn your electronic claim, you domust notinclude wantyour:

• VAT65A
• certificate toof use thestatus
• invoices
• other servicesupporting todocuments submitand information

You must make your claims,claims orby post if:

• you havedo not registeredwant to use itSDES byto 30submit November,your all claims
• you musthave benot maderegistered byto post.use SeeSDES theby Postal30 ClaimsNovember

For sectionmore oninformation, thisread pageparagraph (2.7.2).2.9.4.

2.9.2 Requesting access to the Secure Data Exchange Service

If you want to submit your claims using theSDES, Secure Data Exchange Service, you need to email newcastle.oru@hmrc.gov.ukthe ORU. You should include:

• ‘SDES’ in the subject field
• confirmation you would like to use the Secure Data Exchange ServiceSDES
• whether you have a Businessbusiness Taxtax Accountaccount already set up

We will contact you within 15 calendar days to start the registration process with you and provide registration guidance.

If you have any difficulty during the registration process, contactcall the Overseas Repayment Unit (ORU). on 0300 322 9279. Do not contact the VAT helpline,helpline as— they will only direct you to this notice.

2.9.3 After you’ve submitted a claim

You will receive a dated receipt. If you do not receive a receipt, email newcastle.oru@hmrc.gov.ukthe ORU and put ‘SDES Claim’ in the subject.

If you do not receive any contact within 6 months of submitting your claim, email newcastle.oru@hmrc.gov.ukthe ORU, attaching the date stamped date-stamped SDES receipt to let us know. receipt.

WeYou havemust thekeep right to request any and all original hard copies of documents associated with your claim,claim. soWe youhave mustthe keepright to request these. Failure to dokeep sosuch documents may result in claims being rejected in full or in part. Read the‘proof proof that you’ve paid VATVAT’ section(section (2.102.12) onto thisfind page)out forwhich details of documents thatyou areneed needed to make a claim.

2.7.22.9.4 Postal Claimsclaims

IfYou youmust dopost notyour wantclaim to use theHMRC Secureon Dataor Exchangebefore Service,31 orDecember if:

• you do not registerwant for theto serviceuse beforethe 30SDES November, system
• you mustdo postnot yourregister claimfor toSDES HMRC on or before 3130 December.
  November

You must send us your:

• VAT65aVAT65A
• Certificatecertificate of Status (CoS)status
• invoices
• other supporting documents and information

This information should be sent to:

We may ask you to provide proof of postage to confirm that you posted the claim on or before 31 December.

2.9.5 Email security

We can only correspond with you by email if you have given us your permission. You should include the following email consent when you make a claim.

‘I understand and accept the risks associated with corresponding via email, and I am content for HMRC to send this sensitive information to me via email.’

If you are the authorised agent or representative, you will need to confirm in writing that your client understands and accepts the risks.

This email consent is valid for 12 months and will need to be updated.

For more information, read HMRC’s privacy notice.

Read factsheet CC/FS72 DSC1 Corresponding with HMRC by email to find out more about contacting HMRC by email.

2.82.10 Application form

Apply using the formVAT65A VAT 65Aform.

The VAT65A should be completed electronically. The schedule at question 9 must be typed and not handwritten.

The next sentence has force of law under the Value Added Tax Regulations 1995.

Applications by non-UK businesses for refunds of VAT incurred in the UK (under the terms of VATValue Added Tax Regulations 1995 SI(SI 1995/25181995/2518) sectionregulation 191(1) (a)) may be made on form VATVAT65A 65A and must contain the information requested on that form.

The legislation also permits use of a similar form if if:

• it is produced by an official authority
• it and contains the same information and declaration setas out in the VATVAT65A 65A.
  form

2.92.11 Certificate of status

2.9.12.11.1 Certificate proving your business activity

When you make your first applicationapplication, you must also include a certificate of status (CoS) from the official authority in your owncountry. countryThis showingwill show that you’re registered for business purposes in that country.

When you apply for the certificate of status, make sure you ask for it to show all the information that the UK authorities will need to process your application. For example, if the invoices are made out in your company’sbusiness’s trading name, the certificate must show this as well as the name of the person registered.

The certificate of status must contain:

• the name, the address and official stamp of the authorisingofficial bodyauthority (or other recognised identification mark)
• yourthe own name and address of the business (if youthis haveis a PO Box address, more information can be found in theparagraph business address section on this page — 2.9.3 )2.11.3)
• the nature of your business
• your business registration number

If you are submitting a claim as part of a VAT group, the certificate of status must also include the names of the group members.

You must apply for the certificate of status and send it to HMRC before the relevant deadline. InWe thewill caseaccept oflate certificates if there is an exceptional event wherewhich prevents the official authority cannotfrom issueissuing a certificate in good time,time. we will accept certificates that are late. Examples of theseexceptional events may be:

• a global pandemic
• a national epidemic
• a national emergency
• a government shutdown

The certificate of status must be supplied within a reasonable time after it was issued. You may be required to provide evidence of the delay, and that you requested the certificate within a reasonable time. This evidence may include information from the official authority’s website. You must still submit all other documents of the claim by the relevant deadline.

If you are submitting your claim electronically, you must retainkeep the original certificate of status. If you are sending your claim by post, you must send the original certificatecertificate. —A a photocopy is not acceptable.

You may also use the formVAT66A VAT 66Aform.

The next sentence has force of law under the Value Added Tax Regulations 1995.

The certificate of status for non-UK businesses required under the terms of VATValue Added Tax Regulations 1995 SI(SI 1995/25181995/2518) sectionregulation 191(1)(b)(i) may be made on form VATVAT66A 66A and must contain the information requested on that form.

The legislation also providesallows forthe use of a similar form if if:

• it is produced by an official authority
• it and contains the same information set out in the VATVAT66A 66A.
  form

2.9.22.11.2 Submitting an electronic certificate

We will accept electronic certificates of status (e-CoS) if they’re issued by the official authority in your country of establishment,establishment and the official authority, or other recognised authority, has an online validation system that HMRC can access to verify that you’re in business.

IfWe themay naturerequest ofalternative yourevidence businessfrom you if information is missing from the electronic certificate of status, we may ask you to provide alternative evidence.status.

2.9.32.11.3 Business address

This is the address where the business is established,established. forFor example the place of its central administration and where the general policy and day to day running of business activities takes place. A postal or mailing address is not a business address.

We are aware thatthat, in some regionsregions, the address of a business establishment can include a PO Box because not all the roads and buildings are numbered.

Where we have received a certificate of status and it is unclear if the address is that of a business establishment, or a mailing address, we will ask for documentary evidence to make sure that this is the place where your business is established.

2.9.42.11.4 LengthValidity of the certificate

Each certificate is valid for 12 months from its date of issue. It will cover any applications you make during that year. Once the certificate has expired, obtainyou andwill sendneed ato newsend oneit issuedto byus the official authority in your country of establishment with your next application.

2.102.12 Proof that you’ve paid VAT

You must have correctly completed invoices, vouchers or receipts from your suppliers showing:

• an identifying number
• your supplier’s name, address and VAT registration number
• your name and address
• details of goods or services supplied
• the date of supply
• the cost of the goods or services (excluding VAT)
• the rate of VAT
• the amount of VAT charged

If the value of a supply is £250 or less (including VAT), the invoice need only needs to show:

• your supplier’s name, address and VAT registration number
• the date of supply
• details of goods or services supplied
• the cost of the goods or services (including VAT)
• the rate of VAT

If you have imported goods, you must have the VAT copy of the import entry or other customs document showing the amount of VAT that you have paid.

If you aresend sending your claim electronically, you must keep originals of all invoices and import documents with your application. If you aresubmit submitting your claim by post, you must send original documents — copies are not acceptable.

2.112.13 LetterAppointing ofan authorityagent to make claim on your behalf

You can prepare and send in your own application or have this done by an agent. YourIf agentyou willuse needan eitheragent, athey Powermust ofbe Attorneyauthorised or letter of authority before acting for you, andor toreceiving receiveany money on your behalf. You can authorise an agent using:

• a Power of Attorney
• a letter of authority

Example — format of a letter of authority acceptable to customsHMRC

‘I (name and address of claimant) hereby appoint (name and address of agent) to act on my behalf in connection with any application I make to the Commissioners of HMRC under the Value Added Tax Regulations 1995 as from time to time amended or replaced. Any repayment of VAT to which I am entitled pursuant to any such application made on my behalf by my above named agent shall be paid to (name and address of payee).

Date signed (by the claimant)’

2.122.14 Electronic signatures

You may use an electronic signature on the VAT65A, Power of Attorney or letter of authority. Electronic signatures may include:

• scanned or photocopied documents of handwritten signatures
• names typed into electronic documents or messages
• signatures signed on the screen of a digital device
• verified digital signatures

Signatures must be provided by the claimant themselves with full and informed consent. We may seek assurance or further information to verify this.

2.15 When your refund will be paid

The refund will be made within 6 months of receiving a satisfactory application. If your application is in order, the invoices showing that you have paid the VAT will be returned to you as soon as your application is authorised for payment. If you have a query about an application you have mademade, contact the UK VAT Overseas Repayment UnitORU.

If your application is found to be incorrect after the refund has been paid, any overpayment will normally be deducted from your next refund.

HMRC may charge penalties for incorrect applications. If you have made an error, you should submit a correction as soon as possible.

We take a very serious view of false applications. Refunds obtained by means of a false application can be recovered, and penalties may be imposed.

2.132.16 Method of payment

Payment can be made directly to your own bank through one of the following:

• SWIFTSociety (Society for Worldwide Inter-Bank Financial Telecommunications)Telecommunications (SWIFT)
• a UK bank
• by payable order in sterling directly to yourself or to your appointed agent

As payment by SWIFT is faster, less expensive and more secure, you’re encouraged to use this method of payment. If you opt for payment by SWIFT, you must make sure that you provide the following information, together with a copy of a bank credit slip:

• bank account number
• currency of account
• bank identification code
• bank account name
• bank name
• bank address

Payments to bank accounts will be made in pound sterling. If you opt for payment by payable order you should cash it at your own bank. Payable orders are computer generated and, unlike cheques, they’re not signed. They should not be returned to HMRC for encashment.

2.142.17 Application rejected

If your application is rejected, we’ll tell you the reasons why.

If you do not agree with the decision, you can either:

• ask for the decision to be reviewed by an HMRC officer not previously involved in the matter
• appeal to an independent tribunal

If you opt for a reviewreview, you can still appeal to the tribunal after the review has finished.

If you want a reviewreview, you should:

• write to the address given in the decision letter within 30 days of the date of the letter
• give your reasons why you do not agree with the decision

We will not take any action to collect the disputed tax while the review of the decision is being carried out.

If you want to appeal to the tribunal you should send them your appeal within 30 days of the date of the decision letter.

YouFind canout get more information about appeals and reviews.

3. How UK and Isle of Man businesses can claim overseas VAT

UK and Isle of Man businesses can claim refunds of VAT from the EU and in other countries abroad. This process varies across the world so you will need to follow the procedure set out by the country from which you’re making the claim. UK businesses may need to provide a VAT66 certificate of status to get a refund..

Get more information about claiming VAT refunds from EU countries on the EU Commission’s website

Check how to claim VAT refunds in Northern Ireland or the EU, if you’re established in Northern Ireland or in the EU.

Your rights and obligations

Read the HMRC Charter to find out what you can expect from HMus Revenue and Customs and what we expect from you.

Help us improve this notice

If you have any feedback about this notice, email: customerexperience.indirecttaxes@hmrc.gov.uk.

You will need to include the full title of this notice. Do not include any personal or financial information like your VAT number.

If you need general help with this notice or have another VAT questionquestion, you should phone our VAT helpline or make a VAT enquiry online.online.

Putting things right

If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right.

If you’re still unhappy, find out how to complain to HMRC.

How HMRC uses your information

Find out how HMRC uses the information we hold about you.you.