Three-quarters of firms not reclaiming foreign VAT
Nearly three-quarters of firms report they are experiencing difficulties when reclaiming refunds for foreign VAT, according to a report by the Organisation for Economic Co-operation and Development (OECD).
Furthermore, half of businesses reclaim less than half of the foreign VAT they incur. A new procedure for reclaiming VAT from EU countries came into effect on 1 January 2010, which allows businesses to reclaim their foreign VAT electronically with help from HM Revenue & Customs (HMRC).
The full report can be found at:
http://www.oecd.org/dataoecd/18/52/44560750.pdf
For more information on HMRC's VAT refund procedure go to:
http://www.hmrc.gov.uk/budget2009/bn77.pdf
