VAT refund claims: submit your application before 30 September!
VAT refund claims for input VAT 2021 may be submitted before 30 September 2022.
14 July, 2022
EU and non-EU businesses that have incurred in input VAT in one of the EU countries during 2021 may submit a VAT refund claims by the 30 June or 30 September 2022.
The Directive 2008/09/EC – also known as the 8th Directive mechanism, introduces the VAT refund procedure for EU businesses claiming VAT paid in another EU member state.
On the other side, many non-EU businesses are allowed to submit their VAT refund applications concerning input VAT paid in an EU country following the mechanism set in the Directive 86/560/EEC, also known as the 13th Directive.
Nevertheless, if the foreign business performs taxable transactions in the Member State of Refund during the same period where they have incurred in input VAT, then the VAT registration in the country becomes mandatory. In that case, the correct way to claim input VAT is via the VAT return, according to the specific rules in the country. In this scenario, the VAT refund application submitted following the mechanism of the 8th or 13th Directive would be normally rejected.
Get in touch!
Marosa can help you recovering input VAT incurred in the EU. Contact us for more information about VAT refund procedures. Normally, applications of EU companies for 2021 VAT should be submitted by 30 September 2022.
EU businesses VAT refund claim
EU companies will submit their VAT refund applications to the Member State of Refund via the online form facilitated by the tax authorities in their country of establishment.
Once the application is received by the tax authorities from the claimant's country of establishment, and provided all requirements are met, the request is re-directed to the competent tax authorities in the Member State of Refund.
The application must be submitted up to 9 months from the end of the calendar year to which the refund period relates. For example, applications for the calendar year 2021 should be submitted at the latest by 30 September 2022.
Applications must be filed electronically, according to the country of establishment requirements for online submissions.
It is usual that companies attending conferences or events abroad where they have incurred on VAT are entitled to recover that VAT amount via the 8th or 13th Directive mechanisms.
EU member state countries shall establish the minimum amount for submitting the refund claim. The standard minimum amounts are EUR 50 for the year reporting period, and EUR 400 for reporting periods of less than a year.
The initial application for the VAT refund claim submitted via the country of establishment’s website does not need to add supporting documents for the refund claim. However, once the procedure is with the Member State of Refund, it will be usual that the authorities open a verification procedure where they request invoices and other type of documents supporting the VAT amount requested for reimbursement.
When do you need an EU VAT number? Have a look to our article about VAT registrations in the EU.
Non-EU businesses VAT refund claim
The procedure for the VAT refund request made by a non-EU company or taxable person regarding input VAT incurred in an EU country is very similar to the procedure for the EU businesses.
The following remarks shall be considered:
- Some EU countries only allow the VAT refund procedure via the 13th Directive for companies established in countries where there is a reciprocity agreement in place. Therefore, this shall be verified before submitting the refund claim.
- Also, it may be required to appoint a fiscal representative for VAT refund purposes in some Member States of Refund.
- EU countries may also set VAT restrictions to the type of expenses allowing input VAT deduction.
Deadlines for submitting the VAT refund claim may vary country per country. The usual deadlines for submitting the refund request is 30 June or 30 September of the year following the VAT year period.
In order to correctly submit the application based on the procedure from Directive 86/560/EEC:
- The business cannot be established in an EU Member State
- The business cannot be VAT registered, or have performed taxable transactions that arise the need for a VAT registration in the country where they incurred in input VAT.
You will find more information about these procedure on our previous article about EU VAT refund procedures here.