Value Added Tax Act 1994 section 39

Repayment of VAT to those in business overseas

Section 39 provides a mechanism for businesses based entirely outside the UK to reclaim VAT they have incurred in the UK, through a scheme set out in regulations made by HMRC.

• HMRC may create a regulatory scheme allowing overseas businesses to reclaim UK VAT that would have been their input tax had they been VAT-registered in the UK.
• The scheme may apply different rules depending on where the overseas business is located.
• Claims and repayments may be required to go through UK-based agents, who can be treated as taxable persons for VAT purposes.
• The scheme sets out conditions, time limits, claim formats, repayment methods and provisions for interest payments to or by HMRC.