New rules for claiming VAT incurred in other EU Member States

The press release mentioned in the previous posting also announced a change to the way in which VAT incurred by EU businesses in Member States where they are not established will be recovered.

The new system will be a fully electronic procedure. The press release says:

…thereby ensuring a quicker refund to claimants.

A feature of the new system is that claimants will be paid interest if they receive their refund late.

The new system is supposed to come into effect on 1 January 2010.

Without seeing the legislative text, and having no information from the UK on how they intend to implement the changes, makes it difficult to do more than speculate on how good the new process will be.

Related posts:

1. New Place of Supply of Services rules from 1 January 2010
2. Forthcoming changes to the procedure for obtaining refunds of VAT paid in other EU Member States
3. Marks & Spencer’s teacakes – again
4. New Invoicing rules in the UK
5. Changes to Time of Supply Rules