VAT on travel expenses - Europe

Psyche

Hello there!
Question for the VAT experts. I know that if a VAT-registered UK business purchases goods or services from a European supplier, they are supposed to pay UK VAT not European VAT. But how does this work in practice on things like hotels and restaurants for business travel?
Thanks!

Londina

In my practice they don't bother with those receipts, basically we claim UK VAT only on UK receipts, for the European ones we consider everything not vatable.

T.C.

Glad to hear that. I did that on some accounts in the past - basically ignored the VAT and put it in as a whole expense.

deanshepherd

You always have been able to reclaim EU VAT paid it was just a really cumbersome process. You had to register in each EU country concerned and submit a VAT return in that country's own language which usually meant appointing an agent - not worth it for small sums.

However, since January 1st you can now submit electronic claims in your own country in your own language so I have been getting clients to stockpile those EU receipts ready for processing.