The UK left the EU VAT regime on 31 December 2020. The UK introduced on 1 January 2021 a deferred import VAT scheme – Postpone VAT Accounting (PVA) – so traders importing goods into the UK do not have to make cash payments of import VAT. This can be recorded through a UK VAT return, which is completed by all UK VAT registered businesses – both UK resident and non-resident.   Cross-border VAT refunds for EU businesses Most businesses who incur VAT in connection with their activities in an EU country where they do not habitually supply goods/services (and so are not required to register for VAT) are nevertheless entitled to deduct that VAT (Articles 170-171a VAT Directive). This ‘deduction’ is made by means of a refund from the EU country where they paid the VAT.   To qualify for a refund under this procedure, during the refund period a business must not have: Been based in the refunding EU country or Supplied goods or services there – except: Exempted transport & ancillary services (Articles 144, 146, 148, 149, 151, 153, 159 or 160 VAT Directive); or Supplies to customers liable for payment of the related VAT under the reverse-charge mechanism (Articles 194-197 or 199 VAT Directive).   VAT refunds for non-EU businesses Businesses not based in the European Union who incur VAT in connection with their activities in an EU country where they do not habitually supply goods/services (and so are not required to register for VAT) are entitled to deduct that VAT. This ‘deduction’ is made by means of a refund from the EU country where they paid the VAT.   VAT refunds for non-EU tourists EU retailers can provide a VAT refund for goods sold to non-EU tourists when exporting them. Specifically, this covers: Tourists whose permanent address or habitual residence (as stated in their passport or other recognized identity document) is not in the EU. EU nationals living outside the EU (who can prove this with a residence permit or similar). Conditions The tourists must provide proof of residence (e.g. non-EU passport or residence permit). The goods must be taken out of the EU within 3 months of being bought. The tourist must provide a stamped VAT refund document proving this. The value of the goods bought must be above a certain minimum (set by each EU country). Retailers can either refund the VAT directly or use an intermediary. One or other of them may charge a fee, deductible from the refunded VAT amount.