Input #VAT recovery on #entertaining #ov

Input #VAT recovery on #entertaining #overseas clients can now be claimed
#HMRC have conceded that the block on claiming input VAT on entertaining overseas clients is contrary to EU Law. They also advised that legislation will be introduced to enable to enable recovery to take place

Time limit – This is subject to the 4 year cap.

Evidence required to make claims

• Details of the overseas customers
• The type of expenditure such as meals to support business meetings
• The amount of VAT claimed
• Evidence that the VAT has been incurred and not previously been deducted
• Evidence of the type of business entertainment excluded from previous returns

Type of claim
The claim for the input VAT must be made as a voluntary disclosure to HMRC, making it clear that the error (in not reclaiming the VAT when it was due) was made because of the HMRC practice of blocking the input tax on entertaining. HMRC prefer taxpayers to use form VAT 652, but the claim may be made by letter.
Where to send the claims

In either case the claim should be send to:
VAT Error Correction Team
HM Revenue & Customs
Queen’s Dock
22 Kings Parade
Liverpool
L74 4AA
Tel: 0845 601 0904

ABG can of course help with this and you should contact your usual ABG contact partner or our main switchboard on 020 7330 0000

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