UK VAT refund for a Polish company — claim for non-established businesses (VAT Notice 723A)

When a Polish company pays VAT in the UK

Although the United Kingdom is no longer part of the European Union, Polish companies regularly incur UK VAT there. This happens most often when the place of taxation for a given transaction is the UK and the supplier is a UK VAT-registered business that charges the tax on their invoice. Typical situations include: attendance at trade fairs and conferences in the UK (stand fees, entry, stand-fitting), services connected with property located in the UK, certain accommodation and transport services consumed on site, hire of equipment used in the UK, and some purchases of goods and materials made locally. In all these cases a Polish company — even though it is an EU entity — receives an invoice bearing UK VAT and actually pays that tax.

The key distinction is between two situations. If the Polish company is registered for VAT in the UK, it recovers input VAT by deducting it on its UK VAT Return and this article does not apply to it. If, on the other hand, the company is not registered for VAT in the UK, has no establishment or fixed place of business there and makes no supplies in the UK, it does not file a return — and it recovers UK VAT from invoices through a separate refund scheme for overseas businesses, described by HMRC in VAT Notice 723A. This article reflects the legal position as at 2026-06-02. Please contact a customs agent or tax adviser before taking any action.

What this scheme does not replace

The 723A scheme concerns the recovery of VAT that a Polish company has itself incurred in the UK as a purchaser. It does not replace import accounting: if a company imports goods into the UK and is the importer of record, UK import VAT is dealt with in a different way (usually by registering for VAT in the UK and using the Postponed VAT Accounting mechanism). The 723A scheme is also not a means of recovering customs duty — duty and VAT are two separate charges, as we explain in our article on the difference between duty and VAT.

Who may apply — eligibility conditions under the 723A scheme

According to VAT Notice 723A, a business may claim a refund of UK VAT under this scheme if it meets two cumulative conditions. First — it is not registered, liable or eligible to be registered for VAT in the UK. Second — it has no place of business or other residence in the UK and does not make any supplies of goods or services in the UK. For a typical Polish company that has merely incurred VAT at a trade fair, on services or on purchases in the UK, both conditions are usually satisfied.

HMRC allows exceptions to the "no supplies in the UK" condition: the scheme remains available where, for example, the only activities in the UK are international goods transport services, or supplies on which the UK recipient accounts for VAT under the reverse charge mechanism. This is significant because reverse charge means that many cross-border services do not trigger a requirement for a Polish company to register for VAT in the UK — a topic we expand on in our article on fiscal representatives in the UK.

The 723A scheme versus UK VAT registration — which to choose

The boundary between "recovering VAT through the 723A scheme" and "registering for VAT in the UK" turns on the question of whether the company actually makes supplies in the UK that trigger a registration obligation. If so — the 723A scheme does not apply and the correct route is UK VAT registration and deduction of input VAT on the return. If not — i.e. the company merely incurs VAT as a purchaser — the 723A scheme allows the tax to be recovered without setting up a UK VAT registration. In practice, the right path is determined by an analysis of the place of supply of each transaction; if in doubt it is worth consulting an adviser before choosing.

The 723A procedure and form VAT65A

The claim is submitted on the official form VAT65A — "Application for VAT refund by a business person not established in the UK". The form must be completed electronically (HMRC specifies that the invoice schedule in the relevant section must be typed, not handwritten). There are two ways to submit: electronically via HMRC Secure Data Exchange Service (SDES), or by post to the VAT Overseas Repayment Unit in Newcastle (HM Revenue and Customs, VAT Overseas Repayment Unit S1250, Benton Park View, Newcastle upon Tyne, NE98 1YX, United Kingdom). For the electronic route HMRC requires prior registration in SDES — given the 31 December deadline, registration must be completed by 30 November.

It is best to treat the procedure as a sequence of steps:

1. Collect and verify invoices bearing UK VAT for the relevant refund period — ensure they meet the formal requirements (see below).
2. Obtain a certificate of status issued by the competent authority in the country of establishment (in Poland — the relevant official certificate), confirming that the business is a trading entity. HMRC requires the original of this certificate.
3. Complete form VAT65A electronically, with a typed invoice schedule.
4. Submit the claim via SDES (after prior registration) or by post to the Newcastle unit.
5. Meet the deadline — the claim for a given prescribed year must be received by 31 December after it ends.

Source: gov.uk — form VAT65A and VAT Notice 723A.

This is the UK HMRC scheme — not the EU VAT-REFUND system or the "13th Directive"

This is the most common source of confusion. To recover VAT paid in the UK, the only applicable procedure is the UK HMRC scheme (VAT Notice 723A, form VAT65A) — not the EU electronic VAT-REFUND system that Polish companies use to reclaim VAT from other EU member states. After Brexit the UK is a third country for VAT purposes, so the EU portal has no application here.

The so-called 13th Directive (Directive 86/560/EEC) is a symmetrical EU-side mechanism: it governs refunds of VAT by EU member states to taxpayers established outside the Union. In other words, the 13th Directive would apply in the reverse situation — if a UK business (an entity outside the EU) wanted to recover VAT paid in, say, Poland. For a Polish company recovering VAT from the UK the direction is the opposite and the UK procedure applies. Confusing the two directions is a typical mistake that leads to a claim being submitted under the wrong procedure.

Deadlines and the refund period (prescribed year)

The 723A scheme operates on an annual cycle defined by the prescribed year. The refund period runs from 1 July to 30 June of the following calendar year. A claim for UK VAT incurred in a given prescribed year must be submitted by 31 December after that period ends. HMRC treats this deadline strictly — claims are processed in order of receipt and a late submission will generally result in the loss of the right to a refund for that period.

A claim may cover a period of between a minimum of 3 calendar months and a full prescribed year. The length of the period determines minimum refund thresholds: for a claim covering less than a full prescribed year but at least 3 months, the minimum amount is £130; for a claim covering a full prescribed year (or a shorter period that is the tail end of a prescribed year of less than 3 months), the minimum is £16. Claims below these thresholds cannot be submitted. Source: VAT Notice 723A — gov.uk.

Documents required for the claim

A valid 723A claim requires principally:

• Completed form VAT65A with a typed invoice schedule.
• Original certificate of status issued by the official authority in the country of establishment, confirming that the business is a trading entity.
• VAT invoices evidencing UK VAT incurred — including invoice number, supplier name, address and VAT number, purchaser details, description and date of supply, net amount, VAT rate and VAT amount. For supplies not exceeding £250 (VAT-inclusive), HMRC accepts simplified invoices.
• Customs document / copy of the import declaration showing VAT — where the claim relates to import VAT.

It is worth noting that the original certificate of status must be sent to HMRC, and the documentation as a whole must be complete and consistent with the invoice schedule on the form — shortcomings in this area are a frequent cause of refusals.

Common mistakes and grounds for refusal

The most common reasons for rejection or reduction of a refund under the 723A scheme are: (1) submitting the claim after the 31 December deadline; (2) absence of a valid original certificate of status or a certificate that does not meet HMRC requirements; (3) including in the claim VAT on items that are excluded from the right to a refund; (4) inconsistency between the invoices and the schedule on form VAT65A, or invoices that do not meet the formal requirements; (5) attempting to reclaim VAT when the company should in fact be registered for VAT in the UK.

HMRC indicates that VAT cannot be reclaimed under this scheme in relation to, amongst other things: activities unconnected with a business; purchases used to make supplies in the UK; most ordinary passenger cars (with a limited exception for hire/leasing on mixed use); second-hand goods subject to a margin scheme (e.g. used cars, antiques); entertainment and hospitality costs (with a very narrow exception); and goods covered by the Northern Ireland Protocol. Before submitting a claim it is therefore worth going through the list of items and filtering out VAT that the scheme does not cover.

The role of a customs agent and adviser

Although form VAT65A can be submitted independently, in practice for larger or recurring refunds the assistance of an adviser or customs agent shortens the process and reduces the risk of refusal. Support typically covers: assessing whether the company actually qualifies for the 723A scheme (or should instead register for VAT in the UK), verifying invoices against HMRC requirements, obtaining the certificate of status, correctly completing and timely submitting the claim via SDES, and conducting correspondence with the VAT Overseas Repayment Unit. Easy Clearance helps Polish companies organise their documentation and navigate the 723A procedure — contact us if you have incurred VAT in the UK and wish to reclaim it.

What the current official rules provide

A Polish company that has paid UK VAT, is not registered for VAT in the UK and has no establishment or fixed place of business there can recover that tax under the UK scheme "Refunds of UK VAT for non-UK businesses" (VAT Notice 723A). The condition is that no supplies are made in the UK (with exceptions for international transport and reverse-charge transactions). The claim is submitted on form VAT65A — via HMRC Secure Data Exchange Service (SDES) or by post to the VAT Overseas Repayment Unit in Newcastle. The refund period (prescribed year) runs from 1 July to 30 June, and the claim must be submitted by 31 December after it ends. Minimum refund amounts are £130 (period of at least 3 months but less than a full year) or £16 (full prescribed year). The scheme does not apply to companies registered for VAT in the UK, which deduct VAT on their return, nor to the EU VAT-REFUND system or the so-called 13th Directive (the symmetrical EU-side mechanism). This article reflects the legal position as at 2026-06-02. Please contact a customs agent or tax adviser before taking any action.

FAQ — frequently asked questions

Can a Polish company not registered for VAT in the UK reclaim UK VAT?

Yes. A Polish company that has paid UK VAT, is not registered for VAT in the UK and has no establishment or fixed place of business there can apply for a refund under the UK scheme "Refunds of UK VAT for non-UK businesses" (VAT Notice 723A). A key condition is that no supplies are made in the UK. Source: gov.uk — VAT Notice 723A.

What is the refund period (prescribed year) and the claim deadline?

The refund period ("prescribed year") runs from 1 July to 30 June of the following year. A claim for a given prescribed year must be submitted by 31 December after that period ends. HMRC applies this deadline strictly. Source: gov.uk — VAT Notice 723A.

Which form is used to submit a UK VAT refund claim?

The claim is submitted on form VAT65A — "Application for VAT refund by a business person not established in the UK". It can be submitted electronically via HMRC Secure Data Exchange Service (SDES) or by post to the VAT Overseas Repayment Unit in Newcastle. Source: gov.uk — form VAT65A.

How does the 723A scheme differ from the so-called 13th Directive and the EU VAT-REFUND system?

To reclaim VAT paid in the UK, the UK HMRC scheme (VAT Notice 723A) is the only applicable procedure — not the EU VAT-REFUND system. The so-called 13th Directive is a symmetrical EU-side mechanism: refund of VAT from an EU member state to businesses established outside the EU. These are two separate directions — for a refund from the UK, the UK procedure applies.

Does the 723A scheme apply to companies registered for VAT in the UK?

No. Companies registered for VAT in the UK do not use the 723A scheme — they recover input VAT by deducting it on their VAT Return. The 723A scheme is exclusively for non-registered businesses with no establishment in the UK. Source: gov.uk — VAT Notice 723A.

Official sources

• Refunds of UK VAT for non-UK businesses (VAT Notice 723A) — gov.uk HMRC — GOV.UK
• Form VAT65A — Application for VAT refund by a business person not established in the UK — GOV.UK
• VAT: detailed information — gov.uk — GOV.UK