VAT Refunds for EU Businesses and Non-EU Businesses

Codes for Goods and Services in the EU

When submitting a claim for a VAT refund, you must use specific codes to describe the goods and services on which you paid VAT. These codes are:

1. Fuel
2. Hiring means of transport
3. Expenditures relating to means of transport
4. Road tolls and road user charges
5. Travel expenses, including taxi fares and public transport fares
6. Accommodation
7. Food, drink, and restaurant services
8. Admissions to fairs and exhibitions
9. Expenditures on luxuries, amusements, and entertainment
10. Other

How to Claim an EU VAT Refund

Businesses that wish to claim an EU VAT refund must make their claim electronically. Your online application must be made to the authorities in the country where your company has its home office. 

The authorities in the country where you have your home office will review your request for a VAT refund. If you are eligible for one, the local authorities will forward your claim to the authorities in the other EU country. The EU VAT refund process is consistent for all member nations. 

Steps in Claiming an EU VAT Refund

The following steps are involved in claiming an EU VAT refund:

For example, a business that wishes to claim a VAT refund for 2022 must submit the application before September 30, 2023. All applications must be submitted online. 

The MSE must forward confirmation of receipt “without delay”. The confirmation must be made electronically and include the date the application was received.

The MSE will not forward the application for a refund during the 15 days if it finds any of the following situations exist:

• The applicant is not a taxable entity under the law
• The applicant only carries tax-exempt goods
• The applicant does business under the special scheme for small enterprises
• The applicant’s VAT is covered under the flat rate for farmers

The MSR will decide whether to approve or refuse the refund within four months. In some cases, the MSR needs further information to make its decision. In this event, it will notify the applicant by e-mail within that time. The applicant has one month to provide additional information from when the request is received. 

The MSR should provide the applicant with its decision within two months of receipt of the additional information.

On request, they may be made in another Member State.

Interest Payable on EU VAT Refund

A claimant is entitled to interest on their VAT refund if the country issuing the payment is late. 

VAT Refunds for Non-EU Businesses

Suppose your business is not based in the EU and you have been charged VAT on business activities where you have not supplied goods or services</b>. In that case, you may be entitled to a VAT refund. For example, you are running a business based in Switzerland, and one or more of your employees attend a conference in Belgium. VAT is added to the hotel bill. 

How to Claim a VAT Refund as a Non-EU Business

As a non-EU business, you can send your application for a VAT refund to the tax authorities in the EU country where the VAT was charged. 

Some EU countries will only grant a VAT refund if the country where your home office is based offers a similar arrangement for businesses from that EU country. Your company may not decide to apply for a VAT refund if the amount is insignificant. If your firm spends a lot of money on business activities, the VAT can add up. In that case, it is worthwhile to take the time to submit the relevant documentation to claim the refund. 

Track your Expenses - Including VAT - with Mooncard Credit Cards

The Mooncard corporate credit card makes it easy for everyone on your team to track their expenses. Once an employee charges an item on the card, they take a photo of the receipt. The image is digitally stored as proof of the expense in case of enquiries later on. 

All the information is sent to your company Accounts Department in an account entries format. There is no need to re-enter the data. 

To discover all the features and benefits that accompany switching to Mooncard as your corporate card, contact us to schedule an online demo now.