EU VAT refunds – deadline extended
HMRC have confirmed that the deadline for the submission of VAT refund requests relating to 2009 cross-border VAT claims is to be extended. Instead of 30 September 2010, it will instead be 31 March 2011.
The change relates back to the new rules that became effective 1 January 2010. That is when it became compulsory for UK based businesses to use a new on-line system and to file such refund claims via HMRC. This was part of a new EU wide system, whereby refund claims are submitted in the EU member state where the claimant is based. The new electronic system for VAT refunds was intended to reduce the administrative burden and speed-up the processing of claims.
However, a number of EU member states were unable to get their websites ready by the launch date whilst other countries had technical problems with their websites. The EU Commission has strongly urged EU member states to make their web systems fully operable as quickly as possible, in order to minimise any negative impacts on EU businesses.
The deadline for submission of refund requests for 2009 expenses is being extended from 30 September 2010 to 31 March 2011. The EU legislation to amend the Directive is expected to be adopted during October and will apply retrospectively from 1 October 2010.