What is a VAT reclaim?
A VAT reclaim is a business asking a foreign tax authority to refund the VAT it paid there. This cheat sheet covers how to think about it and what to check before you file. The detail is further down.
How to think about it
- It's for businesses, not tourists. Business refunds go through tax authorities. Tourist refunds on goods carried out of the EU go through retailers or specialized intermediaries.
- Non-EU businesses can claim too. A non-EU business that pays VAT in an EU country where it doesn't habitually supply goods or services can get a refund from that country, subject to that country's conditions.
- Not every cost qualifies. Some EU countries don't refund VAT on categories like restaurant costs, entertainment, cars and fuel. The UK scheme excludes business entertainment, apart from very basic entertainment for overseas customers.
- The UK runs on an annual deadline. The UK refund year runs from 1 July to 30 June, and non-UK businesses must apply by the following 31 December.
What to check
- Proper VAT invoices. HMRC wants invoices showing the supplier's name, address and VAT number, your name and address, what was supplied, the date, the cost before VAT, the VAT rate and the VAT amount.
- Minimum amounts. A UK claim covering the full refund year must be at least £16. A claim covering at least 3 months but less than the full year must be at least £130.
- Proof of status. A first UK claim on form VAT65A needs a certificate of status from the official authority in your home country, valid for 12 months from issue, plus the invoices and supporting documents.
- Keep the originals. HMRC can ask for the original documents and may reject all or part of a claim if you didn't keep them.
UK and EU refund routes
| UK, for non-UK businesses | EU, for non-EU businesses | EU, for EU businesses | |
|---|---|---|---|
| Rules | VAT Notice 723A | Directive 86/560/EEC | Directive 2008/9/EC |
| Where you claim | HMRC, on form VAT65A | The EU country where the VAT was paid | Your own national tax authority, which forwards the claim |
| Limits | No refund on business entertainment (except very basic entertainment for overseas customers) or most ordinary business cars | Countries may require reciprocity, restrict which costs qualify or require a tax representative | Some countries exclude costs like restaurants, entertainment, cars and fuel |
Questions
What is the difference between a VAT reclaim and a tourist VAT refund?
A VAT reclaim is a business claiming VAT on business costs from a tax authority. A tourist refund covers goods a non-EU visitor takes out of the EU in personal luggage within 3 months of purchase, claimed through the retailer or an intermediary.
Can a business outside the UK reclaim UK VAT?
Yes, if it isn't registered, liable or eligible to register for UK VAT, has no place of business in the UK and makes no supplies there, with limited exceptions. HMRC refuses on reciprocity grounds only if the business's own country has a refund scheme but bars UK businesses from it.
How long does a UK VAT refund take?
HMRC says it will make the refund within 6 months of receiving a satisfactory application.
How do EU businesses reclaim VAT from another EU country?
They file an electronic refund claim with their own national tax authority, which checks it and forwards it to the country where the VAT was paid. If that country pays late, the claimant is paid interest.
Sources
- European Commission, Taxation and Customs Union, VAT refunds, accessed November 2, 2026.
- Your Europe, European Union, VAT refunds: claiming online, accessed November 2, 2026.
- HM Revenue & Customs, Refunds of UK VAT for non-UK businesses (VAT Notice 723A), accessed November 2, 2026.
- Engine, Travel Reporting and Analytics, accessed November 2, 2026.