Overseas Businesses Can Reclaim UK VAT
How? Eligibility, Deadlines, and Key Conditions
For many overseas businesses, UK Value Added Tax (VAT) can represent a significant cost — but in many cases, it doesn’t have to be. The UK offers a refund mechanism that allows foreign businesses to reclaim VAT incurred on expenses such as travel, events, trade fairs, professional services, and certain goods bought in the UK for business purposes.
However, the process is tightly regulated, and eligibility criteria must be met in full. Missing a key condition or deadline can result in claims being rejected — with no recourse to appeal late submissions.
Who Can Reclaim UK VAT?
To reclaim UK VAT as an overseas business, you must satisfy all of the following conditions:
✅ Not registered for VAT in the UK
✅ No business establishment or fixed presence in the UK
✅ No UK supplies during the claim period — with very limited exceptions (e.g., some transport services)
Additionally, your home country must offer reciprocal VAT refunds to UK businesses. If there is no mutual agreement in place, your claim will be refused.
Key Deadline: 31 December 2025
For the refund period covering 1 July 2024 to 30 June 2025, claims must be submitted no later than 31 December 2025.
Late claims are not accepted, and HMRC applies this deadline strictly.
Submitting early is strongly recommended to avoid processing delays or documentation issues.
Eligible and Ineligible VAT
Not all UK VAT can be reclaimed. Common eligible expenses include:
Participation in trade shows and exhibitions
Business travel and accommodation
Professional fees (e.g., legal, advisory)
Goods purchased in the UK for export
VAT cannot be reclaimed on:
Business entertainment (e.g., client hospitality)
Most business cars
Non-business or mixed-use expenses
Goods consumed in the UK without being exported
Supporting documentation — including original invoices — is required for all claims.
How to Submit a Claim
Claims must be submitted through the HMRC VAT refund portal, using the official process for overseas businesses. Key steps include:
Preparing invoices and supporting documentation
Completing the claim form for the relevant period
Providing proof of business activity in your home country
Ensuring bank account details are correct for refund purposes
Authorised agents can act on behalf of overseas businesses, making the process easier and helping avoid costly rejections.
Why This Matters for International Businesses
For companies engaging in UK business activities, events, or supply chains, the VAT refund scheme can significantly reduce operational costs. However, compliance is critical — any mismatch in eligibility or documentation can result in lost refunds.
Final Thoughts
Reclaiming UK VAT as an overseas business is entirely feasible but requires careful attention to eligibility, documentation, and strict deadlines. With the 31 December 2025 deadline approaching for the current refund cycle, now is the time to prepare claims and gather supporting records.
If you're unsure whether your business qualifies — or would like support preparing and submitting your claim — professional advice can help ensure you maximise recoverable VAT and stay fully compliant.