Effective 1 January 2010, the EU will streamline the process for reclaiming VAT incurred in Member States.
Claims are to be processed electronically with the home tax authority (i.e. HMRC for UK businesses).
Other changes include:
Time limit extended to submit claims
Businesses now have nine months rather than six to submit their claims (from the end of the calendar year in which VAT was incurred).
Applicant to receive interest for late refunds
If the refund does not take place within four months, the tax authority in the refund Member State will be required to pay interest. This deadline can be extended to a limit of eight months in the event that further information is requested.
Applicant entitled to appeal process
Applicants will have the right of appeal in the Member State of Refund.
For more information see Budget Note 77:
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