Key takeaways
- Know your eligibility: Businesses not VAT-registered in an EU country can often reclaim VAT paid there, provided they meet local refund criteria.
- Stay organized: Keep detailed invoices and submit claims before each country’s deadline—usually within 6–9 months after year-end.
- Seek expert help: VAT refund rules differ across EU countries, so consulting a tax professional can simplify compliance and boost refund success.
In short: An EU VAT refund lets a business reclaim VAT paid in an EU country where it is not VAT-registered and makes no taxable sales. EU businesses claim electronically through their home tax authority. Non-EU businesses apply directly to the country that charged the VAT. Deadlines usually fall six to nine months after the year ends.
The European Union (EU) has many rules on Value Added Tax (VAT) for businesses, and they can be hard to follow. This is especially true when you want to reclaim VAT paid in EU member states. With the right knowledge and strategy, though, you can manage your VAT claims well and potentially save significant amounts of money. This guide to EU VAT refunds for businesses covers the essential steps and tips for a successful VAT recovery process.
How does VAT work in the EU?
The EU has a harmonized VAT system: the EU sets the VAT rules, but each member state sets its own VAT rates within set limits. Because rates vary across countries, EU VAT refunds can be both an opportunity and a challenge for businesses. For a closer look, see CJEU's “Bad Debts” Judgment Prompts Rethink on VAT Refunds in Bulgaria.
Who is eligible for an EU VAT refund?
A business is usually eligible for an EU VAT refund if it is not VAT-registered in the refunding country and has made no taxable operations there. In general, only businesses established outside the refunding country can claim a VAT refund there. The details can vary, so check the local VAT refund rules of the country in question.
Which expenses are eligible for a VAT refund?
Business expenses eligible for a VAT refund can include, but are not limited to:
- Travel and accommodation expenses
- Trade fairs and exhibitions expenses
- Professional services fees
- Goods and services used for business purposes
Each country has its own list of eligible and non-eligible expenses for VAT refunds. So it is crucial to review the specific requirements of each country where you've paid VAT.
Which expenses are often not refundable?
Some EU countries refuse refunds for certain costs, even when they were incurred for business. According to Your Europe, restaurants, entertainment, cars and fuel are common examples. Check the refund country's rules before you include these costs in a claim.
How do you claim an EU VAT refund?
For EU-based businesses
An EU-based business can recover VAT paid in another member state where it does not regularly sell goods or provide services. In that case it does not need to register for VAT there. The VAT Directive (Articles 170-171a) gives it the right to recover those VAT expenses. The member state where the VAT was paid refunds it.
To keep things simple and avoid language barriers, you submit an electronic refund request to your local tax authority. Your local tax authority checks your identity, your VAT identification number, and whether the claim is legitimate. It then forwards the claim to the tax authority of the member state where the VAT was paid.
Your application must include all relevant VAT invoices and documents that support the claim. If the tax authority of the country that charged the VAT pays the refund late, you are entitled to interest on the delayed payment.
For non-EU businesses
A non-EU business can also claim back VAT paid in an EU member state where it does not regularly provide goods or services. In that case it does not need to be VAT registered there. The member state that charged the VAT pays the refund.
You submit the refund request to the tax authority of the member state where the VAT was paid. The process can vary a lot from country to country, with different forms, documents and deadlines. It is a good idea to check the local tax authority's website or ask a tax professional.
What are the EU VAT refund deadlines and minimum amounts?
For EU businesses, the refund claim is due by 30 September of the year after the refund period. These rules come from Directive 2008/9/EC, which every member state applies:
- Deadline: 30 September of the calendar year following the refund period.
- Minimum claim: €400 for a period shorter than a calendar year, and €50 for a full calendar year or the rest of one.
- Decision: The refund country must notify you of its decision within four months of receiving the claim. If it asks for more information, it has two months from receiving that information.
- Payment: An approved refund must be paid within 10 working days after the decision deadline. Late refunds earn interest.
For non-EU businesses, each member state sets its own deadline and process. Some countries also refund only businesses from countries that offer EU businesses comparable refunds, known as reciprocity.
How does an EU business file a refund claim, step by step?
- Collect the invoices for VAT paid in each country where you are not registered.
- Check which expenses that country refunds and remove any it excludes.
- Log in to your home country's electronic VAT refund portal.
- Create one claim per refund country and enter each invoice with its expense code.
- Submit the claim by 30 September of the following year.
- Answer any requests for more information quickly, because the decision waits for your reply.
Example: A German company pays Belgian VAT on a hotel and trade fair stand in 2026. It is not VAT-registered in Belgium, so it files a claim for Belgium through the German portal. The claim must be in by 30 September 2027.
How can you make your VAT refund claim succeed?
A successful EU VAT refund claim depends on good records, meeting deadlines, knowing local rules and, where needed, expert help:
- Keep detailed records: Keep all invoices and receipts linked to your VAT payments. You need these documents for your VAT refund application.
- Be aware of deadlines: Each country has its own deadline for VAT refund applications. It is usually six to nine months from the end of the calendar year in which you paid the VAT.
- Understand local requirements: Learn the VAT refund rules in each country where you've paid VAT. These cover eligible expenses, minimum claim amounts, and the documents you need.
- Consider professional assistance: VAT laws are complex and vary between countries. So talking to a VAT specialist or tax advisor can help a lot. They can guide you through the rules, prepare documents, and improve your chances of a successful refund.
Is claiming an EU VAT refund worth it?
Yes, claiming EU VAT refunds can be a significant financial opportunity for businesses. The process may seem complex and slow. But once you understand who is eligible, which expenses qualify and how to apply, EU VAT refunds become much clearer. Keep accurate records, watch the deadlines, and get professional advice if needed. That way you can reclaim VAT well and improve your bottom line.
Do you need help with your VAT compliance and refunds? Book a free call with one of our VAT experts to find bespoke solutions for your business, optimize your VAT costs, and reach millions of new potential customers.
How Taxually handles this
Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.
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Frequently asked questions
Who can claim a VAT refund in the EU?
Businesses that are not VAT-registered and do not conduct taxable activities in the country where VAT was paid can usually claim a refund, provided they meet local eligibility rules.
What expenses qualify for VAT refunds?
Common eligible expenses include travel, accommodation, trade fairs, professional services, and business-related goods. However, each EU country sets its own rules on what qualifies.
How do EU-based businesses apply for VAT refunds?
EU companies must submit an electronic refund request via their home country’s tax authority, which then forwards it to the relevant EU member state where the VAT was incurred.
Can non-EU businesses also reclaim VAT?
Yes. Non-EU businesses can apply directly to the tax authority of the EU country where the VAT was charged, but the process and documentation requirements vary by country.
What are the deadlines for VAT refund applications?
Most EU countries require refund claims to be submitted within 6–9 months after the end of the calendar year in which the VAT was paid. Always check the specific national deadline.
