VAT refunds from Great Britain

30 September 2021 is the deadline for submitting applications for refunds of VAT paid in other EU states. But what is the situation regarding VAT refunds from Great Britain following the departure of the UK from the EU?

VAT refunds between individual states are based on the reciprocity principle - i.e. the state in which the foreign entity in question has its seat does not assess Value Added Tax (or a similar tax), or if such a tax has been collected, it is refunded to the Czech VAT payer. According to a statement by the General Financial Directorate, an official treaty on reciprocity between the Czech Republic and the UK has not been concluded, but the above-mentioned principle continues to be observed in practice by both the Czech Republic and the UK.

The General Financial Directorate has confirmed the continued applicability of the reciprocity principle by issuing information on refunding Czech VAT to taxpayers that have their seats in the UK. Moreover, the UK has confirmed on its webpages that VAT refunds will be provided by the UK to VAT payers who have their seat in an EU member state.