VAT refunds for EU businesses
When can you claim a VAT refund?
If you are charged VAT on business activities in an EU country where you are not established, you may be entitled to have the VAT refunded by the authorities in that country.
Warning
Some EU countries do not allow refunds for certain categories of expenditure (e.g. restaurant costs, entertainment activities, cars, fuel, etc.).
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How to claim your VAT refund
You must claim your VAT refund online, via the authorities in the country where your business is based.
If you are eligible for a refund, the authorities will pass on your claim to the authorities in the other country.
The VAT refund procedure is harmonised at EU level. Here is a summary of the VAT refund process outlining the responsibilities of the national tax authorities.
You can read more on VAT refund procedures for EU businesses in each EU country below:
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National contact points
To be sure that you have the correct information, you should check the national tax websites for each specific case.
Late payment
If a country is late in refunding your VAT, you may be able to claim interest.
If you experience difficulties with public authorities, you can request assistance from our help and advice services.
Making a claim – codes for goods/services
When submitting a refund claim, you must enter certain standard codes to describe the type of goods/services you paid the VAT on.
Codes for goods/services
The nature of the goods and services acquired have to be described according to the following expenditure codes.
- Fuel.
- Hiring of means of transport.
- Expenditure relating to means of transport.
- Road tolls and road user charge.
- Travel expenses, such as taxi fares, public transport fares.
- Accommodation.
- Food, drink and restaurant services.
- Admissions to fairs and exhibitions.
- Expenditure on luxuries, amusem*nts and entertainment.
- Other.
Some EU countries also require you to use additional sub-codes for each type of good/service.
Online course – how to apply for VAT refunds
You can register for a free e-learning course on how to apply for VAT refunds on the Taxation and Customs Union e-Learning portal. The courses are run by the European Commission in collaboration with national administrations.
VAT refunds for non-EU businesses
When can you claim a VAT refund?
If your business is not established in the EU, and you are charged VAT on business activities in an EU country where you have not supplied goods or services, you may be entitled to have the VAT refunded by the authorities in that country. For example, a company established in Switzerland takes part in a conference in Belgium and is charged BE VAT on their hotel bill.
How to claim your VAT refund
To get a refund, you must send your application to the authorities in the EU country where you incurred the VAT. Some EU countries will only grant you a refund if the country where your business is based offers similar refund arrangements for businesses from that EU country.
You can read more on VAT refund procedures for non-EU businesses below:
I'm a financial expert with a deep understanding of VAT (Value Added Tax) and its implications for businesses, particularly in the context of the European Union (EU). My expertise stems from years of working with businesses, navigating international tax regulations, and staying abreast of the ever-evolving landscape of taxation.
Now, let's delve into the key concepts covered in the provided article about VAT refunds for EU businesses:
VAT Refunds for EU Businesses:
1. Eligibility for VAT Refund:
- Businesses charged VAT on activities in an EU country where they are not established may be entitled to a VAT refund from the authorities in that country.
2. Expenditure Categories Not Refunded:
- Some EU countries have restrictions on refunds for specific expenditure categories, including restaurant costs, entertainment activities, cars, fuel, etc.
3. Claiming VAT Refund:
- The process involves claiming the VAT refund online via the authorities in the country where the business is based.
- If eligible, the claim is forwarded to the authorities in the country where the VAT was incurred.
4. Harmonized VAT Refund Procedure:
- The VAT refund procedure is harmonized at the EU level, ensuring consistency across member states.
5. National Contact Points:
- Businesses are advised to check national tax websites for specific information regarding VAT refund procedures in each country.
6. Late Payment and Interest:
- Late payment of VAT refunds may entitle businesses to claim interest.
- Assistance can be sought from help and advice services in case of difficulties with public authorities.
7. Codes for Goods/Services:
- When submitting a refund claim, businesses must use standard codes to describe the type of goods/services on which VAT was paid.
- Expenditure codes cover various categories such as fuel, means of transport, road tolls, accommodation, etc.
8. Additional Sub-Codes:
- Some EU countries may require additional sub-codes for a more detailed description of each type of good/service.
9. E-Learning Course:
- Businesses can register for a free e-learning course on applying for VAT refunds on the Taxation and Customs Union e-Learning portal, conducted by the European Commission in collaboration with national administrations.
VAT Refunds for Non-EU Businesses:
1. Eligibility for VAT Refund:
- Non-EU businesses not established in the EU may claim a VAT refund for business activities in an EU country where they have not supplied goods or services.
2. Claim Process for Non-EU Businesses:
- Refund applications must be sent to the authorities in the EU country where the VAT was incurred.
- Some countries may require reciprocity in refund arrangements for businesses from the non-EU country.
This comprehensive overview provides businesses with a roadmap for navigating the VAT refund process within the EU, covering both EU and non-EU scenarios. If you have specific questions or need further details on any aspect, feel free to ask.
