Does your business have an international character? Did you pay the price including local VAT when purchasing goods and services abroad and would you like to get it back? Do you have costs in other Member States even though you do not have a business there? Do you ship goods within the European Union? Does your company present itself at various trade fairs or exhibitions abroad?
If you reply to one of these questions YES, don’t hesitate to contact us, because we know how to get back VAT paid abroad! We can prepare the claim, communicate with foreign Tax Authorities, review of content of all your invoices and other documents necessary for submission of VAT refund claim and legitimacy of your claim for VAT refund.
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It is possible to submit claims to all EU member states and also to EEC (European Economic Community) states and other states where a bilateral contract is agreed on (e.g. Czech Republic has a valid bilateral contract with Macedonia, so Czech companies can receive a VAT refund from Macedonia).
The tax office of the country that refunds VAT is limited by a maximum deadline of four months (unless it has questions or asks for additional information). If the tax office has questions or asks for additional information the deadline can be prolonged by two months. As we are aware that it can be time-consuming, we provide pre-financed VAT refund service as well.
For the VAT refund process, it is necessary to send us the original documents. It can be done in electronic form (if the invoice contains a valid electronic signature), or by mail in physical form.
It is possible to use all invoices from all issuers that has been pay by bank transfer, credit or debit card and by cash and which meet all legal requirements for invoices. In some countries it is possible to use a simplified invoice as well, where the details about your company are missing (company name, address details, VAT number).
The claim is submitted via electronic tax portal of your establishment country, where the claim is forwarded to country of refund. There is no possibility to submit a VAT refund claim from more than one country in one-step. You have to prepare claims for every country separately. It is necessary to check and validate individual documents one by one to avoid the mistakes, which could lead to refusal of the application. It happens very often that we have to answer many calls from foreign tax offices. If we do not send them the required documents on time, they will refuse the claim.
In general, there is a rule that the period of claim can be at most one calendar year and at least three calendar months. However, the claim can be also for a shorter period, if the period represents the rest of calendar year. In fact, we submit the claims regularly quarterly, half-yearly and annually.
On the basis of EU’s directive, there is a rule that if the period of claim is shorter than one calendar year, but at least 3 months, the minimum of VAT refund application is 400 EUR. The minimum 400 EUR represents the value of refunded VAT from your documents. If the country of refund uses another currency, it is 400 EUR always every time and it is necessary to convert it to EUR.
If the claim is submitted annually, or it is submitted for the rest of calendar year, there is a minimum 50 EUR.
It is possible, but there is a huge risk you will lose a part of refundable VAT. In general, the tax office accepts only four quarterly and one annual claim. If the claims are submitted by more representatives, it can happen that limit of application is exceeded and one or more of your claims will not be accepted by the foreign tax office.
Of course, these are two different and independent taxes, which are managed by different institutions. The VAT refund application is managed by the tax (financial) office, but the excise duty is managed by customs offices. However, it is necessary to realize there is a much higher administrative burden in passing the necessary documents between the representatives of your company. Since both taxes are based on the same invoices, the agent who handles one service can much more efficiently process the other one. TaxCura offers both services to our clients.
It is necessary to sign for us a contract and power of attorney for access to electronic tax portal. Than you have to tell us your main economic activity, eventually your foreign business activity to correctly identify your right to deduction of VAT. The last step is to send us your documents (invoices, cash receipts, …). You can send us your documents by mail, e-mail, or upload to our secure FTP server (SFTP). Then you can just wait for your money from abroad.