Businesses that need to claim back VAT on expenses from working in the EU are being urged to do so before the planned date for Brexit.

The Chartered Institute of Taxation (CIOT) is urging businesses to submit their claims for 2018 by 5pm on 29 March 2019, to avoid complicated administrative processes in the event of a no deal.

If the UK leaves the EU without a deal in place, UK businesses will no longer be able to use the EU VAT refund electronic system to claim their expenses.

Instead, they will have to make individual, paper-based claims to each country, taking up more time and potentially causing delays in returning the reclaimed tax.

John Cullinane, tax policy director at the CIOT, said:

"The process for reclaiming EU hotel, travel, restaurant and similar expenses incurred by UK companies is awkward in the event of a no-deal Brexit.

"There may be a stricter level of evidence needed to support the claim, depending on how individual countries decide to deal with the UK.

"This will be a nuisance to businesses in terms of administration time and likely delays in getting the VAT back."

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