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Conditions
Without extensive knowledge of each EC country’s legislation
and the necessary practical experience, companies find it almost
impossible to obtain refunds. European VAT and excise duties’
recovery is a burden many organisations face. Consequently, a
large number of companies end up not claiming refund from EC authorities.
And thus lose significant amounts of money every year.
When a company is liable to VAT and taxes in its home EU member
country and pays VAT in another EU member state, it is entitled
to VAT recovery on business expenses according to the 8th Directive.
The conditions are that:
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the
company is not registered for VAT purposes in the country
where it wants to recover the VAT
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the
company is not liable to VAT in that country
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the
VAT is also refundable to a domestic company, e.g. in
Belgium a Belgian entrepreneur can only recover 50 % of
the VAT on fuel for a car.
This also applies to a foreign entrepreneur.
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What can be recovered?
Generally VAT on business expenses can be recovered in Europe
for:
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fuel
and toll costs
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participation
in exhibitions and trade fairs: the rental and constructing
costs of a stand, electrical equipment, ...
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participation
in conferences and training |
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hotel
and restaurant costs |
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car
hire |
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a
number of services such as transport costs, expenses for
loading and unloading, crane hire, ...
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