Part IIU.K. Reliefs, exemptions and repayments

Imports, overseas businesses etcU.K.

39 Repayment of VAT to those in business overseas.U.K.

(1)The Commissioners may, by means of a scheme embodied in regulations, provide for the repayment, to persons to whom this section applies, of VAT on supplies to them in the United Kingdom or on the importation of goods by them from places outside the member States which would be input tax of theirs if they were taxable persons in the United Kingdom.

(2)This section—

(a)applies to persons carrying on business in another member State, and

(b)shall apply also to persons carrying on business in other countries, if, pursuant to any Community Directive, rules are adopted by the Council of the Communities about refunds of VAT to persons established elsewhere than in the member States,

but does not apply to persons carrying on business in the United Kingdom.

(3)Repayment shall be made in such cases [F1and to such extent] only, and subject to such conditions, as the scheme may prescribe (being conditions specified in the regulations or imposed by the Commissioners either generally or in particular cases); and the scheme may provide—

(a)for claims and repayments to be made only through agents in the United Kingdom;

(b)either generally or for specified purposes—

(i)for the agents to be treated under this Act as if they were taxable persons; and

(ii)for treating claims as if they were returns under this Act [F2in respect of such period as may be prescribed] and repayments as if they were repayments of input tax; F3...

[F4(ba)for and in connection with the payment of interest to or by the Commissioners (including in relation to the repayment of interest wrongly paid), and]

(c)for generally regulating the [F5time by which and manner in which claims must be made,] the amount of any repayment is to be determined and the repayment is to be made.

Textual Amendments

F1Words in s. 39(3) inserted (21.7.2009) by Finance Act 2009 (c. 10), s. 77(2)(a)

F2Words in s. 39(3)(b)(ii) inserted (21.7.2009) by Finance Act 2009 (c. 10), s. 77(2)(b)

F3Word in s. 39(3)(b)(ii) omitted (21.7.2009) by virtue of Finance Act 2009 (c. 10), s. 77(2)(b)

F5Words in s. 39(3)(c) substituted (21.7.2009) by Finance Act 2009 (c. 10), s. 77(2)(d)