EU VAT refunds – deadline extended
The EU Commission has decided to postpone the deadline for the submission of VAT refund requests related to 2009.
With effect from 1 January 2010 it became compulsory for taxpayers to use the new on-line system whereby VAT claims were submitted in the EU member state where the claimant is based. This obliged businesses established in the UK to submit all such claims via HMRC. The new system was designed to reduce the administrative burden and speed-up the processing of claims by introducing a new electronic system for VAT refunds.
However, a number of EU member states were unable to get their websites ready by the launch date of 1 January 2010. Other countries had the websites but were suffering technical problems with them.
The Commission has now adopted a proposal to postpone the deadline for submission of refund requests for 2009 expenses from September 2010 to March 2011. This has been done in order to protect the rights of taxpayers entitled to a refund of VAT.
The Commission has strongly urged EU member states to ensure their web systems are fully operable as quickly as possible, in order to minimise any negative impact on businesses.