VROBP4010 - Examples demonstrating under which process a claim must be made: VAT refunds (on goods) in an EU member state for businesses established in Northern Ireland

For these examples, it is assumed that the VAT incurred on either goods or services is related to the economic activity of the claimant as a taxable person and that the right of deduction exists.

Claims which must be made under the EU VAT Refund system

A business is established in Northern Ireland and has been identified as operating under the Northern Ireland Protocol. The claimant incurs VAT on purchases of goods in an EU member State (for example, fuel), but not goods and services that are invoiced on a single invoice.

Where goods and services are supplied together, in order to claim the VAT on the goods via the EU VAT refund system the business will need to request two separate invoices – one for the goods and one for the services.

Claims which must be made under the EU’s 13th Directive process

See section 2 of VAT Notice 723A

A business is established in Northern Ireland and has been identified as operating under the Northern Ireland Protocol. The business incurs VAT on purchases of services in a member State (for example, hotel services).

A business is established in Northern Ireland and has been identified as operating under the Northern Ireland Protocol. The claimant incurs VAT on purchases of goods (for example, food) and services in an EU member State (for example, hotel services) on a single invoice.

A business is established in Northern Ireland and been not been identified as operating under the Northern Ireland Protocol (because it only makes supplies of services). The business incurs VAT on goods and/or services in a member State.