VAT Refund

A VAT refund is the reimbursement of value-added tax that a business has paid on eligible purchases, expenses, or imports when that VAT can be recovered under the rules of the relevant jurisdiction.

Businesses may be entitled to recover VAT incurred on costs directly connected with their taxable activities. Depending on the country and the company’s situation, this can include VAT paid on goods, professional services, imports, travel-related expenses, or other business costs.

The refund process varies depending on whether the company is established and VAT-registered in the country where the VAT was incurred. VAT-registered businesses generally recover eligible input VAT through their periodic VAT returns, while foreign companies may need to submit a separate VAT refund application under specific procedures.

Eligibility rules, deadlines, supporting documentation, and recoverable expense categories differ between jurisdictions. Invoices must usually meet local VAT requirements, and tax authorities may request additional evidence before approving a refund.

For international companies, VAT refund procedures can be complex, particularly when expenses are incurred across several countries.

ASC Consulting supports international companies with VAT refund applications, VAT registration, fiscal representation, and cross-border VAT compliance across multiple jurisdictions in Europe.