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Businesses involved in overseas trade
could be in line for a VAT refund windfall
on entertaining foreign clients, but time
is running out to make backdated claims.
HM Revenue & Customs (HMRC) has
traditionally blocked businesses from
reclaiming VAT incurred when entertaining
overseas contacts, but a recent European
Court of Justice ruling has opened the
door to claims for repayment of VAT.
However, businesses need to act swiftly
if they want to make reclaim VAT on this
type of expenditure, or on VAT overpaid
any other aspect of their operations.
Last year, following HMRC’s January
2008 defeat in the cases of Fleming and
Condé Nast concerning a
three-year cap on VAT adjustments, HMRC
gave businesses until 31 March 2009 to
reclaim VAT overpaid between 1973 and
1997.
With VAT reclaimable from almost 40
years ago, historic claims are likely to
be based on estimates as detailed records
on expenditure are unlikely to have
survived.
VAT is a complex issue, but in the
current economic climate few businesses
can afford to miss out on what could be a
substantial rebate and it is certainly
worth seeking expert advice on preparing a
claim before the opportunity is lost.
For further information on any issues
raised here, please
contact us. |
