Hot off the press, for once – HMRC have taken notice of a European Court of Justice judgement in the case of Danfoss and Astrazeneca (Case – 371/07).
Historically, the VAT Office allowed UK businesses to reclaim VAT on entertainment of foreign customers. Then they didn’t, and that’s the way it has remained for a large number of years. Following the above mentioned case, HMRC have invited retrospective claims from businesses that have not reclaimed it. Act now though – if you can put together the figures quickly enough (by 31 March 2009), you can submit a claim back to 1 August 1988. If the claim is submitted after 1 March 2009, you will be limited to three years’ worth.