HMRC publishes details of VAT refund issues that non-resident VAT registered businesses may face

30 November 2021

During November 2021, HM Revenue & Customs (HMRC) published details of an issue that non-resident businesses, who are VAT registered in the country, may face when they are due a UK VAT refund.

Currently, HMRC are only able to repay these VAT amounts to non-resident businesses in the form of a payable order (cheque) and following the UK's exit from the European Union (EU), many banks and countries will no longer accept these UK payable orders.

To overcome this issue, HMRC are creating a process that will allow affected businesses to request all future VAT repayments to be made directly to their bank account, and in order to use this new system, non-resident businesses will need to make an online application to HMRC to be accepted.

Fiscal Solutions will be keeping an eye on the progress that HMRC make and will reach out to any affected clients when HMRC open their online application process