VAT and EU opportunities for UK companies

Date: 03/08/2022
Author: Greater Manchester Chamber of Commerce
Company: Greater Manchester Chamber of Commerce

Since the UK left the EU, UK companies have been really concerned about the new VAT process, new regulations, and taxation within the EU. Small businesses are the most worried and concerned about it. They have been working very hard trying to get up to speed, but has it been enough?

The UK is no longer part of the single EU VAT area, which means that the sales tax is now collected by each country in the EU.

The Federation of Small Businesses (FSB) told the Guardian; “members are facing ‘significant issues’, as a result of leaving the EU VAT area”. “Businesses just did not have enough time to prepare for this,” said Selwyn Stein, managing director of VAT IT, a firm that helps reclaim the sales tax. “They’re being hit by a rulebook from 27 separate countries, when they are used to dealing with the EU as a single bloc”.

Do you know that you may be able to claim a VAT refund? If it has been charged in an EU member state on or after 1 January 2021 and you’re VAT registered in the UK. 

What can you reclaim using the EU VAT refund system? If you meet the conditions, you can use the system to claim back VAT on invoices for goods only. You’ll not be able to claim back VAT on:

  • Purchases of services
  • Invoices that are for both goods and services

if you want to know more, please find information on the government website: Claim a refund after January the 1st 2021  

How can we help?  

From 1st January 2021, UK and European traders face new rules around VAT. To help UK companies to continue trading with the EU and comply with the new requirements, the Chamber has teamed up with VAT IT, a leading global provider of Value-Added Tax Recovery and Compliance services, with 38 wholly-owned offices worldwide and 20+ years of expertise. If you want to learn more, please get in touch, email: exportbritain@gmchamber.co.uk 

Customs Clearance  

We can now process import and export customs declarations for companies of all sizes, through any port or airport. You can register your company for clearance or find out more by emailing chambercustoms@gmchamber.co.uk. Alternatively, you can complete our short online form 

Training Courses  

You can view our list of upcoming courses here 

 Advice and Support  

For further advice on any of the above or support you require with exporting or importing, please email exportbritain@gmchamber.co.uk 

Source: The guardian, and gov.uk