From 2021, if the Estonian company purchases goods or services from the UK VAT person, to which has been added UK VAT, then the Estonian company cannot generally apply for the refund of such UK VAT through the crossborder EU VAT refund system. As an exception, upon the purchase of goods from the VAT person of the Northern Ireland, the Estonian company can continue to apply for the refund of such UK VAT through the EU VAT refund system.
The Estonian company is treated in the UK as an ordinary non-EU company, which under certain conditions of the UK VAT rules is entitled to the UK VAT refund. For this purposes, the Estonian company must fulfil the following requirements:
• The Estonian company is registered as a business outside the UK;
• The Estonian company is not VAT-registered in the UK and do not have to be, or cannot be, VAT registered in the UK;
• The Estonian company do not have a place of business or other residence in the UK;
• The Estonian company do not make any supplies in the UK, apart from:
• transport services related to the international carriage of goods; or
• goods and services where the customer pays VAT on them.
The Estonian company is entitled to VAT refund for most goods and services bought in the UK for its business, including:
• accommodation and meals;
• trade fairs;
• travel costs;
• 50% of the VAT charged for hiring or leasing a car;
• other goods and services you buy and use in the UK.
We offer tax advice as a separate service as well as part of our accounting service.
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