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Posted Wed, 23 Nov 2022 11:20:36 GMT by Alan Lau
I am a sole trader with VAT account in the UK and have a small partnership business in overseas which we sell goods we bought from UK retail stores. Will I be able to claim the VAT back?
Posted Wed, 23 Nov 2022 13:10:11 GMT by HMRC Admin 10
Hi
Please see the guidance below:
Refunds of UK VAT for non-UK businesses (VAT Notice 723A)
Thankyou.
Regards.
Posted Wed, 23 Nov 2022 13:41:03 GMT by Alan Lau
Hi, In section 2.1, it says: - you are not registered, liable or eligible to be registered for VAT in the UK, you’ll find more about this in Notice 700/1: who should register for VAT - you have no place of business or other residence in the UK and do not make any supplies in the UK (other than transport services related to the international carriage of goods, or supplies where VAT is payable by the person in the UK to whom the supply is made) I am a UK resident but my business is running in Hong Kong. Am I still eligible to apply? Best Regards.
Posted Wed, 23 Nov 2022 16:54:42 GMT by HMRC Admin 10
Hi.
It does depend on the supplies you are making.
You can only be eligible to apply for Vat Registration if you are deemed to be making UK taxable supplies as the nature of the supplies will determine the Place of Supply and hence dictate whether UK taxable supplies are being made .
Please see the guidance below;
Working out whether you need to register
Place of belonging
The place of supply rules for services
Thankyou
Regards.
Posted Wed, 23 Nov 2022 23:28:33 GMT by Alan Lau
Hi, Thank you for the information. I am still a little confused. Because of my business is a partnership business and registered in Hong Kong, but I am a resident of UK while my business partner isn't. Our customers are in Hong Kong only (B2C), Is my business still fall into non-UK business for VAT return? Best Regards.
Posted Thu, 24 Nov 2022 13:04:48 GMT by HMRC Admin 10
Hi.
It's not a case where you are resident,it's a case of where the taxable supplies are made.If you do not make supplies from the UK then there is no requirement to register for VAT.
For exeample if you supply goods within Hong Kong then there would be no requirement to register for UK VAT as no UK taxable supplies would be made.
Thankyou.
Regards.
Posted Thu, 24 Nov 2022 13:28:14 GMT by Alan Lau
Hi, So it is okay for my partnership business in Hong Kong to apply for VAT return under the Refunds of UK VAT for non-UK businesses (VAT Notice 723A) guidance. Am I correct? Best Regard.
Posted Fri, 25 Nov 2022 11:38:44 GMT by HMRC Admin 32
Hi,

Looking at the guidance in Vat Notice 723a the following would seem to prevent you from being able to make a claim:

Who can apply:

If you’re registered for business purposes in a country outside the UK, you may use the scheme to reclaim VAT paid in the UK. You can do this if you meet these 2 conditions:

You are not registered, liable or eligible to be registered for VAT in the UK, you’ll find more about this in Notice 700/1: who should register for VAT

You have no place of business or other residence in the UK and do not make any supplies in the UK (other than transport services related to the international carriage of goods, or supplies where VAT is payable by the person in the UK to whom the supply is made)

Thank you.

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