FAQs

Value Added Tax (VAT) is an indirect tax levied on the supply of goods and services that can add between 5 - 25% to your organisation’s foreign business expenses.  It is levied at every stage in the business cycle, itemised on the invoice and paid to the government in each state with the cost ultimately borne by the end consumer.  VAT was established to encourage cross-border trade from one county to another, and was designed to be neutral to business if they go through the effort to recover their foreign VAT.

Applicable VAT rates vary from country to country and the tax is recognised under different names, including IVA (Italy), GST (Canada, Australia), MWST (Germany, Austria), TVA (France, Belgium) and MOMS (Scandinavia).

In order to encourage international trade, the European Union introduced legislation in the 1990s enabling businesses to claim back VAT paid on expenses incurred while doing business in member states. VAT is refunded from the EU under the 8^th Directive, which enables EU companies to reclaim from any member state, and the 13^th Directive, which allows businesses established outside the 27-member bloc to claim. A number of key non-EU territories, including the US, Japan, Canada and South Korea, also refund VAT thanks to reciprocity agreements.

Generally businesses can reclaim 100% of VAT paid on eligible expenses, subject to fulfilling nominal criteria. The applicable VAT rate varies from country to country, as does the list of eligible business expenditure.  In some cases however only a partial recovery of the VAT amount paid is allowed. These partial recovery expenses are usually for expenses related to accommodation, meals and business entertainment. For example, Austria refunds 50% of VAT paid for accommodation, restaurants and business entertainment, while in Denmark foreign businesses can only claim back 25% of the VAT they have been charged.

Every country has specific rules on what qualifies for VAT reclamation. Although the criteria varies from country to country, taxback.com's tax experts have identified common conditions that many countries require for organisations to qualify for foreign VAT refunds. Visit our Criteria to Reclaim section for detailed information.

All invoices submitted to support your VAT refund claim must be original and need to include the following information:

• Date of issue;
• Invoice number;
• Supplier’s VAT number;
• Supplier’s full name and address;
• Customer’s full name and address;
• Unit price and description of the goods supplied or services rendered;
• The date of the supply and payment (if different from the date of supply),
• VAT rate applied,
• VAT amount payable.

Yes we will return your original invoices after we process your VAT claim.

Taxback.com can manage your organisation’s reclaim process when you supply the following information to us:

• Original invoices to support your VAT claim,
• Power of Attorney authorising taxback.com to arrange a VAT refund with foreign tax authorities on your behalf,
• Certificate of Taxable Status proving that your organisation is VAT-registered in your home country.

A total of 38 countries currently provide VAT refunds, among them all 27 EU member states. The list includes: Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Holland, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Monaco, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, and the United Kingdom. 

Taxback.com can secure foreign VAT refunds from 38 countries on a range of Travel and Entertainment (T&E) expenses including:

• Trade fair and conference costs;
• Meals, accommodation and business entertainment
• Travel and transport costs
• Advertising and promotional costs;
• Professional services;
• And many additional expenses.

Under the relevant legislation your organisation’s VAT must be refunded within 6 months of incurring the expense. Actual processing time can however vary from country to country. Taxback.com's Clean Claims Policy means we only submit claims that have been verified for accuracy saving tax official’s time and ensuring continued strong relationships with foreign tax offices, resulting in faster refunds for your organisation. 

Depending on where your costs have been incurred, you could receive your VAT rebate in as little as four weeks. Click here for an overview of refund timelines.

Yes. In most countries your business must reclaim VAT by June 30 of the year after the VAT costs were incurred. Click here for an overview of refund timelines.

The frequency with which your organisation can submit a VAT rebate claim will vary according to individual countries and tax authorities. Typically, for each country where VAT was charged and is refundable, businesses are entitled to file up to four VAT refund applications per year.

The taxback.com VAT Recovery Solutions are designed to fit the unique needs of companies of all sizes, offering market-leading pricing options tailored to your needs. A customised price quote will be provided based on the specific needs of your organisation.

In most countries we can provide your refund in your local currency either by cheque or bank transfer

Yes. EU companies can get VAT back too. Your business can claim a VAT refund from any EU country as long as your business is not registered in that country.

No. Your application for a VAT refund is filed with the tax authorities of the country where your VAT costs were incurred. It is not filed with the tax authorities in your home country.

Taxback.com does not operate a minimum claim threshold – however many countries do. In most EU countries the minimum requirement for an annual claim is €25 and for a quarterly claim it is €200.  There is no maximum amount which can be claimed.

More than 6000 clients from 107 countries choose taxback.com because of its unique and innovative approach to VAT reclaim. Visit our the Taxback.com Advantage section to find out why we're world leaders in VAT refunds