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Can a US company reclaim VAT paid in the UK?

We (a US corporation, not registered for VAT in the UK) pay VAT for a consultant working in the UK. Can a US corporation get the VAT refunded?

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Yes. You need to get a 6166 and send it to the company to whom you paid VAT. They inturn claim a refund from Her Majesty's Treasury and can send you the refund.

A 6166 (filed with an 8802) can take several weeks. Request as many different entities as you think you'll do business in, since there is a fixed cost for X copies.

Normally you need to send originals, because they (the 6166) are anti-copy proofed.

Topic Expert
Bob Stenz
Title: Controller
Company: Silicon Valley start-up
(Controller, Silicon Valley start-up) |

Thanks Wayne...very helpful!

Stephen Turk
Title: Principal
Company: Stephen Turk, CPA
(Principal, Stephen Turk, CPA) |

Bob - it's been a while since I dealt with this issue, but I think the real answer is that the consultant should not be billing VAT when their client is a US (or other non-EU) entity.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Stephen, you're wrong, but right.

It's the same as a US entity charging sales tax. Without the Sales Tax Exemption letter (6166) they have to charge...

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