HMRC issues policy paper: Revenue and Customs Brief 12, regarding refunds of VAT in the UK for non-EU businesses.
Over the past few months the UK tax office have adopted a very strict application of formal requirements regarding the certificate of status (which is required to be enclosed with all non-EU foreign VAT claims for the UK). Any claim which does not enclose a fully compliant certificate, including all formal requirements – will be returned unprocessed with the reason “certificate of status is not valid”.
The HMRC brief 12, which was published on 12/12/18, officially announced changes in the procedure implemented on 23.5.2018, (which resulted in the rejections above). The new brief introduces an exceptional extension of the deadline to provide a compliant certificate to 31.3.2019 (re: Claims due to be filed by 31.12.2018).
Non-EU companies have until 31.3.2019 to get the required compliant certificate with all HMRC requirements. In practice, almost all certificates which were so far accepted are not acceptable under the new HMRC procedure for one reason or another. The affected companies are from all non-EU countries including USA, Australia and China.
In order to prevent rejection of UK VAT reclaim submission, companies based in any Non-EU country need to obtain a compliant certificate as soon as possible.
Taxback International can provide country specific guidance on obtaining a compliant certificate and/or handle the overall refund process on your company's behalf.
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