Businesses established in Northern Ireland who incur VAT on goods in the EU, and EU businesses who incur VAT on goods in Northern Ireland, will be able to recover this VAT through the electronic cross-border refund system. This enables a business to recover that VAT directly from that country (the UK or EU member state of refund) provided that it is not established in the country of refund and makes no supplies there.
Taxable person established in Northern Ireland or an EU member state, or their authorised agent can apply for recovery of VAT on invoices containing the purchase of goods only. This taxable person has to have a valid VAT number in an EU member state or, in the case of Northern Ireland, have a valid UK VAT registration number and be identified as trading under the Northern Ireland Protocol
The applicant must:
- not be registered, liable or eligible to be registered in the UK or EU member state from which they are claiming the refund
- have no fixed establishment, seat of economic activity, place of business or other residence there
- not have supplied any goods in the UK (including Northern Ireland) or EU member state of refund during the refund period
For further details please have a look on the HMRC side: https://www.gov.uk/guidance/claim-vat-refunds-in-northern-ireland-or-the-eu-if-youre-established-in-northern-ireland-or-in-the-eu.
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