Claiming UK VAT as a Foreign Business: 2025 Guide to HMRC Refunds

Claiming UK VAT as a Foreign Business: 2025 Guide to HMRC Refunds

Many overseas businesses assume that UK VAT is simply a cost of doing business. In reality, most foreign companies are entitled to a full refund of UK VAT on a wide range of expenses. The opportunity is significant. Twenty percent VAT on conferences, R&D activities, equipment, and business travel quickly adds up, yet each year millions remain unclaimed.

HMRC’s Overseas VAT Refund Scheme, set out in Notice 723A, gives non-UK companies a clear route to recover VAT on both goods and services used for their business outside the UK. The rules were last updated in May 2025, and the system is now almost entirely electronic.

This guide explains who is eligible, what can be reclaimed, the documentation you need, and the practical steps to submit a claim correctly. At Antravia, we regularly support U.S. corporations, global hospitality groups, technology firms, and international event organisers with VAT recovery, and the results are often material for cash flow.

Who qualifies for UK VAT Refunds in 2025

Eligibility remains relatively wide. A business can claim UK VAT if it satisfies the following conditions.

Establishment outside the UK
Your business must be established and registered in your home country. You must have no fixed establishment, branch, or VAT registration within the UK.

Business use only
The expenses must be incurred exclusively for business activities. Personal, mixed, or non-business items will be rejected.

Reciprocity
Your home country must offer VAT refunds to UK businesses. The United States, Canada, Australia, and almost all EU jurisdictions qualify. HMRC only rejects claims if your country specifically denies refunds to UK firms.

No UK taxable supplies
You must not make taxable supplies in the UK that require VAT registration, apart from a narrow set of international transport activities.

HMRC has also reaffirmed in its 2025 guidance that claimants must not have any UK-based economic presence. That includes a UK branch, warehouse, or staff who habitually work in the UK. This clarification matters for companies using UK fulfilment centres or contracted personnel.

Foreign visitors purchasing goods to take home may still use the Visitor Refund Scheme, but for services or broader business expenditure, Notice 723A remains the correct route.

If you are a U.S. exporter attending a trade show, an Australian company buying prototypes for export, or a European firm running events in London, you will typically qualify as long as you provide a valid Certificate of Status.

What Expenses can be Reclaimed

A wide range of business expenses attract UK VAT at the standard rate of 20 percent. HMRC refunds VAT on both services and goods, provided the costs support your business activities outside the UK.

Services

Eligible services include the following.

Accommodation and events
Hotels, conference fees, exhibition booths, event spaces, and meeting rooms.

Professional services
Legal services, consultancy, technical services, marketing support, and R&D activities carried out in the UK.

Travel and operational support
Local transport, car hire (with standard 50 percent restrictions for mixed-use vehicles), temporary office space, and related business travel costs.

Training and technology
Seminars, development workshops, IT services, and telecoms used during UK operations.

Goods and Exports

Refunds are available for goods that are either exported or used for your overseas activities.

Purchases for export
VAT on tools, equipment, samples, and prototypes purchased in the UK for export. You must retain export evidence, such as shipping documents or customs declarations.

Imported goods
VAT paid on imports may be reclaimable if the goods are used for your overseas business. Ownership must rest with your business.

Zero-rating at source
Where goods are exported directly, suppliers may zero-rate the invoice if you provide full export evidence. This avoids paying VAT at all.

For mixed-use assets, recover only the business proportion. In 2025 HMRC clarified that exported goods must be linked to “non-UK taxable supplies” to avoid partial exemption adjustments.

What cannot be Reclaimed

Certain items fall outside the scheme. The most common exclusions include the following.

• Private or non-business expenditure

• Entertainment, including meals, hospitality, or client entertainment, unless falling within very narrow exceptions

• Costs linked to UK taxable supplies or exempt UK activities

• Full VAT on motor vehicles, margin scheme goods, or items without valid VAT invoices

• Claims below the minimum thresholds (less than sixteen pounds for an annual claim or one hundred and thirty pounds for a shorter period)

• VAT on goods governed by the Northern Ireland Protocol, which may follow separate EU refund arrangements

Partial exemption applies if your overseas business carries out exempt activities in its home country. Only the taxable proportion may be reclaimed.

How to Claim: The 2025 Process

The UK’s system is now primarily digital. HMRC prefers submissions through the Secure Data Exchange Service (SDES). The process is as follows.

1. Determine your claim period
Claims are made for the prescribed year from 1 July to 30 June. You may also submit periods of at least three months if the total exceeds the minimum threshold.

2. Complete Form VAT65A
Complete the form electronically. Provide a detailed schedule of all invoices, including the VAT amount, invoice number, supplier details, and a clear description of the business activity.

3. Obtain a Certificate of Status
Your tax authority must issue a Certificate of Status (equivalent to HMRC’s VAT66A). It confirms that you are a business in good standing. It remains valid for twelve months.

4. Compile invoices and evidence
Invoices must show the supplier’s VAT number, the VAT amount, and a description of the goods or services. Copies are accepted for postal claims as of the 2025 guidance. Retain all export and import documentation where relevant.

5. Submit electronically or by post
Electronic submission via SDES is recommended. Postal submissions go to HMRC’s Overseas Repayment Unit in Newcastle. Keep proof of dispatch.

6. Processing and repayment
HMRC may take up to six months to process claims. Refunds are paid in sterling to your nominated bank account. Bank charges are your responsibility.

Documentation Checklist for 2025

A valid claim requires the following.

• Completed VAT65A

• Certificate of Status (valid for twelve months)

• Invoices and receipts with VAT amounts clearly stated

• Import and export documentation where required

• Bank details with SWIFT and IBAN

• Power of Attorney if you use an agent

• Partial exemption calculations if relevant

HMRC may request further information or carry out an audit, so clear documentation is essential.

Deadlines and Important Dates

The prescribed year runs from 1 July 2024 to 30 June 2025.
The submission deadline is 31 December 2025.
There are no extensions, and late claims are rejected.
It is advisable to file as early as possible to avoid end-of-year delays and to allow time for any HMRC clarification requests.

Why many Businesses miss out

Many U.S. and international firms leave money unclaimed each year for avoidable reasons.

• Missing or incorrect VAT invoices

• Lack of export evidence for goods

• Misunderstanding reciprocity rules

• Treating foreign VAT as non-recoverable

• Missing the strict 31 December deadline

We frequently encounter cases where businesses overlook import VAT or treat conference and event costs as personal expenses. These are entirely recoverable with the correct documentation.

Real Examples of VAT Recovery

• A U.S. technology company recovered five thousand pounds in VAT on London Tech Week costs, including booth rental, hotels, and marketing services

• A California medical device manufacturer reclaimed four thousand pounds on prototypes purchased in the UK and exported after testing

• A global pharmaceutical group recovered eight thousand pounds in VAT on seminars, laboratory equipment hire, and travel for R&D staff

How Antravia Supports Your VAT Recovery

VAT recovery looks simple on paper but requires accuracy, evidence, and strict compliance with HMRC rules. Antravia handles the full process for international clients.

• Full invoice and documentation review

• Identification of reclaimable items for services, goods, imports, and exports

• Preparation of VAT65A and supporting schedules

• Coordination of the Certificate of Status with your tax authority

• Submission through SDES and direct liaison with HMRC

• Multi-jurisdiction VAT support for the EU, UAE, and other regions

Our approach ensures that businesses recover the full amount they are entitled to while avoiding the risk of rejection.

Start your VAT Check

If your company has incurred UK VAT during the 2024 or 2025 period, you may be entitled to a refund. Upload a sample invoice for a complimentary review or schedule a short consultation with our advisory team.

Last updated: November 2025. Based on HMRC Notice 723A and May 2025 guidance.

See our specialist pages
Global VAT Reclaim - Recover the Tax you’ve already paid abroad
UK VAT Reclaim for U.S. and Global Businesses
EU VAT Reclaim for U.S. and Global Businesses
UAE VAT Reclaim for U.S. and Global Businesses
International VAT Reclaim

References

1. HMRC. (2025). Refunds of UK VAT for non-UK businesses (VAT Notice 723A). GOV.UK. https://www.gov.uk/guidance/refunds-of-uk-vat-for-non-uk-businesses-or-eu-vat-for-uk-businesses

2. HMRC. (2025). Refunds of VAT for businesses visiting the UK. GOV.UK. https://www.gov.uk/guidance/vat-refunds-for-non-eu-businesses-visiting-the-uk

3. HMRC. (2025). Forms for claiming a VAT refund if your business is registered in a country outside the UK (VAT65A). GOV.UK. https://www.gov.uk/government/publications/vat-application-for-vat-refund-by-a-business-person-not-established-in-the-community-vat65a

4. HMRC. (2025). Application for refund of VAT (VAT65A PDF). GOV.UK. https://assets.publishing.service.gov.uk/media/665ee6bf7b792ffff71a86a6/VAT65A.pdf

5. ICAEW. (n.d.). 10 common VAT mistakes. https://www.icaew.com/technical/business/financial-management/10-common-vat-mistakes

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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