Refunds of UK VAT for non-UK businesses (VAT Notice 723A)

This notice applies to supplies made on or after 1 January 2021.

This notice explains how businesses established outside of the UK can reclaim VAT incurred in the UK. It also explains that UK and Isle of Man businesses can claim a refund of VAT incurred abroad.

For VAT purposes, the Isle of Man is treated as part of the UK. VAT is chargeable in the Isle of Man under Manx legislation, which is similar to UK legislation. The scheme described in this notice also applies to refunds of VAT incurred in the Isle of Man. Any references to the UK in this notice include the Isle of Man.

2. Refunds of UK VAT for businesses established outside the UK

You may have to pay UK VAT if you’re registered for business purposes abroad and you buy goods or services in the UK. This does not apply if you buy goods for export, but it may apply if what you buy is used in the UK. For example, if you take part in a trade fair.

You cannot treat this VAT as input tax if you’re not registered for VAT in the UK. You may be able to use this scheme to reclaim VAT charged on:

If you’re registered for business purposes in a country outside the UK, you may use the scheme to reclaim VAT paid in the UK. You can do this if you meet the 2 following conditions: