Effective for VAT incurred from 1 July 2026, HMRC has changed its policy on VAT refund claims for non-UK businesses that are members of a UK VAT group. Previously, the representative member of the VAT group could submit a consolidated refund claim on behalf of all members, including non-UK entities. Under the new policy, each non-UK business must submit its own refund claim directly to HMRC, using the existing 13th Directive (non-EU) or 8th Directive (EU) procedures. The change aims to improve audit trails and reduce fraud risk.
Key Takeaways
- Direct Claim Requirement: Non-UK group members must now file separate refund applications, increasing administrative burden for multinational groups using UK VAT grouping.
- Representative Member Role Limited: The representative member can no longer include non-UK members’ refunds in the group’s VAT return; they remain responsible only for UK members’ liabilities and refunds.
- Transitional Arrangements: VAT incurred before 1 July 2026 can still be claimed through the representative member, but only if the claim is submitted by 31 December 2026.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement