Overseas VAT reclaims: What UK businesses need to know?

UK businesses, landlords and high‑income individuals often incur VAT on expenses overseas – for example on hotels, fuel, exhibition costs, professional fees or local services but many never reclaim it. In some cases, significant amounts of VAT are simply written off because the reclaim process is misunderstood, overlooked or considered too complex. This overseas VAT can be reclaimed, but the processes, deadlines and eligibility rules vary significantly by country.

Yet overseas VAT recovery can represent a valuable cash‑flow opportunity if handled correctly. Understanding when and how to reclaim overseas VAT can help businesses improve cash flow and avoid leaving recoverable VAT unclaimed.

What is an overseas VAT reclaim?

An overseas VAT reclaim is the process of recovering VAT that has been charged in another country on business‑related costs.

This commonly arises when UK businesses or individuals incur overseas expenses such as:

• Hotels and travel for business purposes.
• Exhibition, conference or event fees.
• Professional or advisory fees.
• Marketing or advertising costs.
• Property‑related expenses abroad.
• Vehicle hire and fuel.

However, recovery is often restricted or blocked on:

• Meals and subsistence.
• Entertainment and hospitality.
• Mixed business and private expenses.

This is another area where claims frequently fail or are never attempted in the first place.

Unlike UK VAT, this overseas VAT cannot be reclaimed through a UK VAT return. Instead, claims must be made directly to the foreign tax authority. Each country has its own rules, paperwork and deadlines. Because the process sits outside day‑to‑day UK compliance, it is often missed entirely.

Can you reclaim VAT on overseas expenses?

In many cases, yes but not always.

You or your business may be able to reclaim overseas VAT if:

• You are VAT registered in the UK.
• You are not VAT registered in the country where the VAT was charged.
• The cost relates wholly to business or investment activity.
• A local business in that country would have been entitled to recover the VAT.

Overseas VAT often arises on expenses incurred for commercial activity; investment purposes can make recoverability less obvious.

Crucially, VAT being charged does not mean it is reclaimable. Some countries block recovery on certain expenses, and the rules vary widely. This uncertainty is one of the main reasons overseas VAT goes unclaimed.

Why is overseas VAT often missed?

Overseas VAT reclaims are commonly overlooked because:

• The rules differ from country to country.
• Claims often need to be made in the local language.
• Original invoices may be required.
• Strict deadlines apply – missed deadlines usually mean no refund.
• There is no single reclaim process or portal post‑Brexit.
• Rejected claims often cannot be corrected or resubmitted.

As a result, many businesses simply treat overseas VAT as an irrecoverable cost, even where refunds are available.

How do you reclaim overseas VAT?

Since Brexit, UK businesses can reclaim EU VAT under what is known as the 13th Directive. In practice, this means:

• Separate claims must be submitted to each EU country.
• Claims are made directly to the local tax authority.
• Supporting documents, including invoices, must meet local requirements.
• Claims must usually be submitted by 30 June following the year of spend.

Each country applies its own rules on eligible costs, minimum claim values and submission format, which can add to the complexity. Understanding what is possible and whether it is worth pursuing often requires a country‑by‑country review.

How long does a refund take?

Overseas VAT refunds are not quick. The typical timescale for an EU claim is several months. Delays are common, particularly where documentation is incomplete or local authorities request further information. Overseas VAT should therefore be viewed as a medium‑term cash recovery, rather than an immediate saving.

FAQs

How do I know if I’m eligible for an overseas VAT reclaim?

This is where we at Gerald Edelman can help. As a high‑level guide, you may be eligible if you can answer ‘yes’ to most of the following:

• Are you VAT registered in the UK?
• Were the costs incurred wholly for business or investment purposes?
• Are you not VAT registered in the country where the VAT was charged?
• Do you hold valid VAT invoices in your business name?
• Would the VAT have been recoverable by a local business?

Even where these conditions are met, eligibility still depends on local rules which is why many potential claims are missed and you may require specialist support.

Is there a minimum amount I can claim?

Yes. Most countries apply minimum claim thresholds (which is normally around the €400 mark), which may differ for:

• Annual claims.
• Shorter claim period.

If a claim does not meet the minimum value, it may be rejected.

Do I need professional support to reclaim overseas VAT?

Not always. Smaller, straightforward claims may be manageable in‑house. However, professional support is often valuable where:

• Claims involve multiple countries.
• Values are significant.
• Local language requirements apply.
• Previous claims have been rejected.
• Internal time and resource are limited.
• Added assurance that the claim will be eligible for recovery.

Support can help ensure VAT is not missed, deadlines are met and claims are worth pursuing in the first place.

How can Gerald Edelman help?

With the rules differing by country and deadlines strictly enforced, specialist support can make the difference between a successful refund and VAT that is written off unnecessarily.

If you regularly incur costs throughout the EU that have previously been deemed irrecoverable, our international VAT team can help. Please reach out to find out more.

Last updated: 05.06.2026