If, for example, you travel abroad on business and pay foreign VAT there, you may be able to claim a refund under certain conditions. Typical items for which input VAT refunds can be claimed include fuel, tolls, rental cars, repairs, hotels, telephone charges and trade fair costs. The specific conditions under which a refund of foreign VAT is possible, and the exact steps you need to take, are set out in the table we have prepared for you, which is available via your login. (login to follow)
Frequently asked questions
Frequently asked questions
What is the VAT refund procedure (Vorsteuervergütungsverfahren)?
The Vorsteuervergütungsverfahren allows businesses to reclaim VAT paid abroad, provided certain conditions are met. It typically applies when no taxable supplies have been made in the foreign country, so a regular input VAT deduction within that country's tax procedure is not possible. Depending on the country, applications are filed via the German Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt) or directly with the foreign authorities.
Which expenses are eligible for foreign VAT refunds?
Typical refundable items include fuel, tolls, rental cars, repairs, hotels, telephone, and trade fair costs incurred during business trips or business activities abroad. The expenses must have been used for your own business, and you must hold proper invoices showing VAT separately.
What are the basic requirements for the refund of foreign input VAT?
The applicant must be an entrepreneur and must not have carried out any taxable transactions in the refunding state (except for certain reverse-charge cases). The foreign VAT must be shown on a proper invoice, and minimum amounts as well as application deadlines apply, which vary by country. Within the EU, applications are submitted electronically via the BZSt portal.
Which deadlines must be observed in the VAT refund procedure?
For refund applications within the EU, the general filing deadline is 30 September of the following year. For non-EU countries, deadlines vary and often fall as early as 30 June of the following year. These are strict cut-off deadlines, and a late application results in the permanent loss of the refund claim.