Claim VAT refunds in Northern Ireland or the EU, if you’re established in Northern Ireland or in the EU

This notice explains how Northern Ireland and EU businesses can claim refunds of VAT incurred on goods in the EU and Northern Ireland under the Windsor Framework using the EU VAT refund system. Parts of this notice have force of law and will be indicated in each case.

2. Refunds of VAT for Northern Ireland and EU businesses (Windsor Framework)

The Windsor Framework means that Northern Ireland maintains alignment with the EU VAT rules for goods. Under these arrangements from 1 January 2021, the EU legislation for VAT refunds continues to apply in Northern Ireland in respect of goods only. EU rules will not apply to supplies of services in Northern Ireland. For information on how to reclaim VAT incurred on services, see sections 3 and 4 of Notice 723A.

Supplies of goods and services made elsewhere in the UK will be subject to UK rules. Any reference to the UK in this guidance must be read in the context of processing VAT claims on goods traded in Northern Ireland.

Businesses established in Northern Ireland who incur VAT on goods in the EU, and EU businesses that 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.

Requests for refunds will continue to be dealt with by the country of refund. The amount refundable will also continue to be determined under the deduction rules of the country of refund and the relevant repayment will be made directly by that country to the business. The system will be an electronic one, with specified timescales and interest payable if these are not met.

Electronic claims will be completed and submitted through the competent authorities in the UK or the EU member state in which the claimant is established.