Companies based in the European Union (EU) can recover value added tax (VAT) on purchases from countries other than where they are established. The deadline for reclaiming VAT is 30 September 2023 for invoices dated 2022.
VAT rates vary significantly across EU countries, with standard rates ranging from 16–27% and reduced rates starting from 2.1% and going up to 18% depending on the country and the type of goods being purchased. This presents a huge opportunity to businesses that make large volumes of purchases abroad—as long as they claim the VAT back correctly and on time.
When submitting a claim, businesses should be aware of the following:
- Tax authorities will respond to claims in their local language and method that may be unfamiliar to the claimant.
- Some transaction types can create a registration liability, adding the burden of additional administrative work and associated compliance costs.
- Inspectors handling the claims often pose additional questions or identify reasons to reject the claim, extending the processing time, thereby requiring additional effort and resources to address the inquiry.
In today’s economic environment, it is important that businesses understand the VAT repayments that they are entitled to. If you haven’t started the process, there is still enough time to gather all the information needed and complete the application form from the relevant country’s tax authority.
Alternatively, seek advice from a tax specialist who can process your claim on your behalf.
TECHNICAL INFORMATION CONTACTS:
Ben Knock
Managing Director, Vice President
VAT Compliance, Consulting, and Reclaim
ben.knock@ryan.com
+44 (0) 20 7257 6544
Richard Haye
Director
VAT Reclaim
richard.haye@ryan.com
+44 (0) 20 7257 8724
Julie Lesage
Director
VAT Reclaim
julie.lesage@ryan.com
+33 1 57 97 59 44
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
- Topics
- Ben Knock
- United Kingdom