German VAT Refund for Foreign Companies: How to Recover VAT in Germany

Which German VAT refund route applies to your company?

The right procedure depends on where your company is established and whether it is VAT-registered in Germany. Sending the claim through the wrong route can cost more than time: it may leave you outside the filing deadline. A fiscal representative in Germany can help route the claim correctly.

EU companies: claim through your home Member State portal

An EU-established company normally claims VAT in Germany through the electronic portal of the Member State where it is established. For example, a French company uses the French tax portal and selects Germany as the Member State of refund.

To use the Directive 2008/9/EC procedure, the company must generally:

• be a taxable person for VAT in its own EU Member State;

• have no seat, fixed establishment or relevant establishment in Germany during the refund period;

• have no German taxable supplies requiring local VAT registration, except limited reverse-charge or exempted cases;

• use the German VAT costs for activities that give a right to deduct input VAT.

The application includes invoice data, supplier VAT details, taxable amounts, VAT amounts and expenditure codes. Germany may request supporting invoices, especially for higher-value invoices or fuel costs.

Non-EU companies: use the BZSt/BOP route and check reciprocity

A company established outside the EU uses the German procedure for foreign entrepreneurs from third countries. This route is handled by the German Federal Central Tax Office (BZSt), generally through the BZSt Online Portal (BOP) and the applicable BZSt forms.

The first question is reciprocity. Germany refunds VAT to businesses established in a third country only where the country of establishment refunds VAT to German businesses, or where the relevant German rules provide another eligible basis.

The claim usually requires:

• a BZSt/BOP access or registration process;

• the German refund application for foreign entrepreneurs from third countries;

• a certificate proving taxable business status in the country of establishment;

• invoices and import documents in the format required by the BZSt;

• evidence that the costs relate to business activities giving a right to deduct.

German VAT-registered companies: deduct input VAT in German returns

If your company is registered for VAT in Germany, the refund directives are not the right tool. German input VAT is deducted in the German VAT return system, usually through the periodic Umsatzsteuervoranmeldung and, where relevant, the annual VAT return.

This applies whether the company is established in the EU or outside the EU. Once the business has a German VAT position, the logic changes: input VAT offsets German output VAT. If the return is in a credit position, the refund is managed through the local German tax office.

Typical triggers include:

• holding stock in Germany;

• local German taxable sales;

• marketplace or fulfilment models creating German VAT obligations;

• domestic supplies not covered by reverse charge;

• an existing German VAT number used for local compliance.

Deadlines, minimum amounts and timing

German VAT refund claims are deadline-driven. Missing the deadline is not a formatting issue; it usually means the claim is lost for that period.

For VAT incurred in 2026, an EU business should file no later than 30 September 2027. A non-EU business should work on a 30 June 2027 deadline.

Which German VAT costs are usually refundable?

German VAT is refundable only where the expense is business-related and would be deductible under German VAT rules. The invoice must also meet Germany invoicing rules to be valid for VAT purposes.

Commonly eligible costs include:

• trade fair and exhibition costs: stand rental, electricity, technical services, event services;

• business accommodation: hotel costs for employees or staff travel;

• transport and logistics costs;

• fuel, tolls and vehicle rental where deduction is allowed and documented;

• professional training and seminar costs;

• technical services, equipment rental or other business services invoiced with German VAT.

German VAT rates are generally 19% for the standard rate and 7% for reduced-rate supplies. Mixed invoices may contain both rates, for example accommodation and ancillary services.

Expenses and invoices that often get rejected

Germany rejects claims when the VAT is not deductible, the invoice is not compliant or the business link is not clear.

Frequent rejection points include:

• private or mixed-use expenses with no reliable business allocation;

• passenger cars and vehicle-related costs where the deduction conditions are not met;

• restaurant or hospitality costs without sufficient business documentation;

• invoices issued to the wrong legal entity;

• missing supplier VAT number or tax number;

• incorrect customer address or company name;

• wrong VAT rate or VAT amount;

• pro forma invoices, booking confirmations or card receipts used instead of proper VAT invoices.

How to prepare a clean German VAT refund file

A strong claim is built before the portal submission. The tax authority should be able to understand the business purpose, the invoice chain and the VAT calculation without back-and-forth.

Use this preparation sequence:

1. Identify whether the company is EU, non-EU or German VAT-registered.

2. Remove invoices linked to German taxable supplies that should be handled in a German VAT return.

3. Check whether the supplier charged German VAT correctly.

4. Reconcile invoice totals, VAT amounts and VAT rates.

5. Classify expenses using the correct refund codes.

6. Collect scans, uploads, originals or import documents according to the applicable portal and BZSt requirements.

7. Keep evidence of business purpose for travel, events, vehicles and hospitality.

See also: Netherlands VAT refund