BREXIT & VAT recovery: you have until the 30th of June
In case of the No-Deal Brexit, the procedure of the Foreign VAT recovery will change significantly. Get ready for it! The procedure of the Foreign VAT recovery will change significantly both for the European and for the British companies.
VAT recovery: a new paper procedure & new deadlines!
For the European companies:
Starting from the 29/03/2019: the European companies non-established in the United Kingdom (UK) will be obliged to claim the VAT supported in the UK through a new paper procedure and to respect new deadlines and refund periods.
For the British Companies:
Big changes will also concern the British companies who will have to follow the procedure foreseen in the 13th European Directive for recovering the VAT supported in the European Union in 2018 and afterwards.
The 13th Directive 86/560 applicable to non-resident companies foresees:
- Submission of hard paper invoices instead of the electronic submissions
- Bringing forward the submission deadline on the 30/06/CY for the expenses of PY instead of the 30/09/CY
- Appointment of the local representative acc. to the Art. 242-0 Z (g) of the Annex II of the French General Tax Code the direct submissions of files by claimants are not accepted anymore
Prevent your British subsidiaries before the 30th of June 2019 for preserving the VAT benefits
Any French VAT recovery claim related to the year 2018 which will be submitted after the deadline (i.e. after the 30/06/2019) & without the representation of the local agent risks to be rejected by the French Tax office without appeal possibility.
It is very important to prevent your British subsidiaries about these imminent changes for preserving the VAT benefits of your group, as well as those of your British clients who may support the French VAT.