Reimbursement of VAT in another member state of the European Union
EVERYTHING YOU NEED TO KNOW ABOUT REQUESTING A FOREIGN VAT REFUND
Any company established in the European Union which generates expenditure in another member country may recover the VAT paid, providing the following conditions are met:
It is subject to VAT in the country where it has its head office.
It is not established in the country where the refund is requested.
It has not conducted any taxable transaction in the country where the refund is requested.
Expenditure eligible for deductions
Not all expenditure can be recovered. A number of products or services are not eligible for deductions. Conditions differ depending on the country of the application. Information on expenditure which is eligible for a VAT refund should be sought before making the application. However, here are a few general rules:
expenditure necessary to performing the activity of the company
expenditure related to transport, catering, exhibitions
Each item of expenditure must be accompanied by supporting documents (generally invoices) including required information, notably the intra-community VAT number of your company and of your suppliers. Depending on the amounts, additional supporting documents may be requested by the administration of the country of the application, such as proof of payment of the invoice, proof of bank transfer, bank statement, copy of the cheque, etc.
How and when to submit an application for a VAT refund
The refund application must be completed on the tax website of the country where the company is established. There is a dedicated section for the VAT refund application. The submission deadline is 30th September of the following year. One application may be submitted per quarter if the amount exceeds 400 €. If this is not the case, the application is submitted for a calendar year with a minimum of 50 €. (The amounts may vary depending on the country).
CONCEPTS TO REMEMBER
A VAT refund application may be submitted in the 28 member countries.
The application must be filed electronically on the tax website of the country of origin.
Any expenditure must be accompanied by supporting documents (e.g. the invoice).
Not all costs are refundable. Conditions may vary from one country to another.
The application is automatically rejected if it fails to comply with directive 2006/112 / CE.
The deadline for submission is 30th September of the following year.
Do you want to recover your VAT in another member country of the European Union ?
WHAT IS THE VAT REFUND APPLICATION PROCESS ?
The first phase is to file the application on the website of the tax department to which your company is subject. The application is electronic and sent automatically to the country concerned. Depending on the amounts of the application, the administration may require additional information on your activity, proof of payment and conversion rates if the currency is different, etc.
When all the supporting documents have been forwarded to the administration, the latter may approve or reject the application (very often, the tax department partially approves the application by deducting only one part of the amount applied for). If the application is accepted, the tax department of the country concerned has 10 days to settle the amount.
It is important to take into account that, depending on the amounts requested, significant additional information may be required and the administration may take several months to respond.
WHAT ASD CAN DO FOR YOU
ASD is an international tax firm specialising in intra-community VAT and offers support to companies in their applications for VAT refunds in the 28 countries of the European Union. We deal with the full administrative process: verification of invoices (compulsory inclusions...) analysis of deductible and non-deductible expenditure, inputting of invoices, preparation of the application, filing of the application, follow-up in the event of feedback from the administration.
An expert looks after your case from the beginning of the process to your VAT refund.
DEDICATED POINT OF CONTACT
Centralise your VAT refund applications in a single service
LINK WITH THE ADMINISTRATION
We reply to all questions raised by the administration
VERIFICATION OF THE TRANSACTIONS
Verification of the required information included on the purchase invoices
SUBMISSION OF THE APPLICATION
Preparation and submission of the application in compliance with the format established by the EU
We will continue to assist you until you receive your VAT refund
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