VAT refund from EU Member States
How do I get a refund for VAT paid in another Member State?
A VAT refund in the EU is a topic which often arouses interest among companies that conduct transactions taxed in other Member States.
A company which is a taxpayer and incurs costs taxed in any of the EU Member States may obtain a VAT refund. It should be noted that VAT cannot be classified as an expense by a company, even if it was paid in another Member State.
Have you paid VAT in an EU Member State in which you do not have a permanent registered office and you would like to obtain a refund? You can apply for this provided that you meet certain conditions.
Note that not all expenses are refundable. Expense categories may vary across countries. A VAT refund applies in the following cases:
To obtain information on expenses that are not subject to a VAT refund, please visit the website of a given tax administration authority or refer to a tax expert. This should be done before submitting the application for refund in order to avoid its rejection.
For example: in the case of tax on a business stay in hotels, VAT is not deductible in Portugal (§ 54 page 19 of the vademecum), though it is deductible in Germany (§ 54 page 20 of the vademecum).
When should I file a VAT refund application?
The waiting period for a refund may not be longer than a calendar year or shorter than three calendar months. However, it may be shorter than three months if it concerns the balance for a calendar year.
Note! A refund application may not cover more than two calendar years. In some Member States, the settlement period in the case of refund is a calendar quarter (e.g. Italy).
The minimum VAT amounts subject to a refund application are as follows:
VAT refund with the support of a tax attorney
Each client is handled by one of our VAT experts. We analyse the situation to make sure that the client is entitled to a refund. Then the expert proceeds with an in-depth verification of the purchase invoices and/or customs documents to determine whether a VAT refund can be effected in the country in question. After submitting the application, we provide answers to all any and all questions about additional information regarding tax administration and ensure that the case is handled in a correct manner.
You can order a comprehensive VAT audit to check what kind of expenses are refundable.
Should you have any questions concerning our services or you would like to receive an estimate, please contact us using the contact form. Our expert will provide you with a free-of-charge consultation.
VAT refund from the EU: Frequently asked questions (FAQ)
To get a refund, the following conditions must be met:
- The taxpayer must be a VAT payer in their country.
- Its registered office may not be located in the country in which the refund application is submitted.
- The taxpayer may not perform any taxable operations that form the basis for registration for VAT purposes in a Member State for the period for which the application is submitted.
A Member State in which a refund application is submitted has four months to consider the application. This period may be extended to six or eight months if it is necessary to obtain additional information. In general, it is assumed that a VAT refund may take place within 3 months in Great Britain, or 8 months in Italy.
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