My client has started going over to trade fairs in Belgium and Germany to sell her products. She has given me a folder of expense receipts and purchase invoices from various foreign suppliers and these have had VAT added to them. My client is VAT registered so can I simply reclaim this VAT on her next VAT return? Or is there a special form I need to complete?
Your client can only reclaim input VAT charged by UK businesses on her UK VAT return. If she want's to reclaim the foreign VAT she will need to submit a claim form in both Belgium and Germany. You'll also need to attach the original invoices as well. This is not always a straightforward process, in fact it can be a complete nightmare, but HMRC have published guidance notice VAT Notice 723 to explain the procedures involved which helps. This can be downloaded from www.hmrc.gov.uk.
