VAT Refund for Non-UK Businesses: HMRC Guidelines & Claim Process 2025

The UK government, specifically HM Revenue and Customs (HMRC), released guidelines regarding VAT refunds for non-UK businesses in 2020 and has updated them several times. The latest update, published on May 2, 2025, refers to rules on how non-UK businesses can claim refunds of UK VAT.

The guide includes all the information on who can request a VAT refund, what can and can not be claimed in the process, the minimum amount of a claim, and other relevant information.

Impact on Non-UK Businesses

Non-UK businesses that are not registered, liable, or eligible to register for VAT in the UK, have no place of business or other residence in the UK, and do not make any supplies in the UK, can request a refund of VAT paid in the UK.

As highlighted in the guidelines, non-UK businesses can claim UK VAT on goods and services bought in the UK and goods imported into the UK. On the other hand, goods and services used for non-business activities, certain second-hand goods, such as cars and antiques, for which no VAT invoice will be issued, the export of goods, and goods that can be claimed under the Northern Ireland Protocol are exempt from the VAT refund scheme.

VAT refund claims can be submitted electronically through HMRC’s Secure Data Exchange Service (SDES) by submitting the VAT65A form, a status certificate, invoices, and other relevant documents and information. 

However, foreign businesses may also send a postal claim on or before December 31 if they do not want to use the SDES system or are not registered before November 30. Businesses sending postal claims should send copies of documents, except for a certificate of status, as documents are no longer returned.

Conclusion

Businesses based outside the UK should carefully examine whether they have the right to claim or request a VAT refund and what procedure they need to follow to exercise that right. Nevertheless, the guidelines provided by HMRC are a valuable source of information that can help non-UK businesses better understand the rules and requirements surrounding VAT refund claims.

Source: UK HM Revenue & Customs