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There may be other questions that will be
specific to your company. Contact us and we will be pleased to advise you.
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Is my company entitled to a VAT refund?
Your business can claim VAT refunds from
most European countries provided it:
- Does not conduct any business activity (in the country
you wish to reclaim from) that would render the company liable or eligible for
VAT registration in that particular country.
- Does not have a business establishment in that country,
for example a sales office (although having a subsidiary does not disqualify
your company)
- Incurs all expenses for business purposes
- Holds valid original invoices covering the European
expenditure.
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As a private individual am I eligible for a
refund?
Individuals travelling for pleasure are not
able to recover the VAT paid on services such as hotel accommodation, car
rentals, petrol and meals. They can however, recover the VAT paid on goods
(i.e. souvenir purchases, clothing, leather goods) which are exported from the
country of sale.
This form of refund however, is outside the
scope of our business - for further information please, contact Global Refund
at www.globalrefund.com
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What is the difference between VAT reclaim and
VAT registration?
VAT Reclaim refers to the refunding
of VAT by European VAT authorities under the 8th and 13th Directives of the
European Union.
VAT Registration refers to the
application for a VAT number in order to charge VAT in a particular country.
This becomes a legal requirement when certain types of business activities take
place in European countries. For example:
- Sales of Goods or Services through
internet/E-commerce
- Drop-shipping
- Importing and Warehousing
- Installation and Service Contracts
- Global Billings
- Reselling exhibition space
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How much management time will this take?
Very little. We have designed the process
to be simple and straightforward for you, so that the information required can
be prepared by any designated member of staff following our easy-to-follow
checklist.
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Are there deadlines for making a claim?
Most European governments impose the strict
deadline of June 30th for any expenses incurred in a previous calendar
year.
UK has separate submission deadlines for EU
and non-EU based companies.
- EU based companies must submit their claim by June 30 for
expenses incurred in the UK during the previous calendar year January to
December.
- Non-EU based companies must submit refund applications by
December 31 for invoices dated July 1 of the previous year through June 30 of
the current year.
Belgium and Netherlands allow retrospective
submissions of up to 5 years back.
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How long does it take to receive the
refund?
The refund from the tax authorities will
differ in length of time depending on the country. The majority aim to return
any reclaimable VAT within 6 to 12 months after the submission of the claim. If
you require information about a specific country, please contact us. We
guarantee to transfer refunded amounts received by us, within 7 days.
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Is there a minimum amount of VAT we have to
submit to make a claim?
We do not ask for a minimum amount of VAT
in each claim. We only ask that you are aware of our minimum fee of £100
or 150 Euro (you are likely to incur this if the amount of VAT in a claim is
about £700 or less).
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Is there a minimum amount of VAT per any given
invoice for it to be included in the claim?
We believe that every little bit adds up -
we will include any invoice or receipt no matter how small the VAT content as
long as it is a proper original
invoice.
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What does the service cost?
We will retain an agreed percentage of VAT
successfully recovered on your behalf. We only get paid when you get your money
back from the authorities. We do not charge any set-up/administration fees to
become a client. Our basic service fee is 15% of the VAT successfully reclaimed
on your behalf (subject to a minimum charge of £100 or 150).
If you would like to receive a full
competitive quote please contact us.
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What documentation is required to make a
refund application?
- A completed VAT Pack from BR VAT Reclaim -
request our pack
- The original
invoices
- A form from your local taxing authority showing that you
are a registered corporation, partnership or sole trader in that country (also
known as a certificate of taxable status).
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Do the VAT authorities return the original
invoices?
The majority of VAT Authorities will return
the original invoices. Some however, may request that numerous sets of
photocopies are submitted along with the originals as a requirement to have
them returned. If you require information about a specific country, please
contact us.
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What Items are eligible for a refund?
For a guide to reclaimable items please see
'What can be reclaimed?'
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What items are not eligible for a refund?
- Non-business supplies
- Supplies used to make a supply in the country of the
claim
- Supply or importation of a vehicle
- Certain second-hand goods such as cars and antiques for
which no tax invoice is issued
- Entertainment or Hospitality Expenses
- Goods and Services bought for resale which are for the
direct benefit of travellers (such as hotel accommodation bought by a tour
operator, travel agent or anyone else, to make up part of a package)
- Transportation (air/boat/train)
If you are in doubt or you have a specific
question, please see 'Contact us:
Ask a question.'
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VAT reclaim in the new EU member states
The following new members have joined the
EU on 1 May 2004:
- Cyprus
- Czech Republic
- Estonia
- Hungary
- Latvia
- Lithuania
- Malta
- Poland
- Slovakia
- Slovenia
For recovering VAT in these territories,
please contact us.
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