EU Directive 2008/09/EC for VAT refund in the EU:
EU Directive 2008/09/EC, effective from January 1, 2010, did establish a method for businesses registered for VAT within the EU to reclaim VAT paid in other EU member states. This directive enables EU businesses to submit their refund applications via the tax authorities’ website in their own country, a shift from the previous system (8th VAT Directive), which required physical submissions in the country where the VAT was incurred.
Directive 2008/09/EC also revised deadlines for claim submissions and the processing of refunds. As with the former system, the member state of refund will handle the requests, determine the refundable amount based on its deduction rules, and directly pay the refund to the claimant.
These changes do not impact refund claims by businesses not established or VAT-registered in an EU member state, which continue to follow the procedures outlined in the 13th VAT Directive.
Eligibility for Refund under Directive 2008/09/EC:
A business registered for VAT in one of the EU member states can reclaim VAT incurred in another. However, if the business is liable or eligible for VAT registration in the member state where the VAT was incurred, it must register there and recover VAT through its regular VAT returns. Refund applications under Directive 2008/09/EC will be denied if the business has its residence, headquarters, a fixed establishment, or taxable activities in the member state where the VAT was incurred.
VAT refund in France:
In France, VAT is referred to as “Taxe sur la Valeur Ajoutée” (TVA). The standard VAT rate is 20%, with reduced rates of 10%, 5.5%, and 2.1%. Special rates apply in Corsica (20%, 13%, 10%, 5.5%, 2.1%, and 0.9%) and the Overseas Departments, excluding French Guiana and Mayotte (8.5%, 2.1%, 1.75%, and 1.05%).
French Overseas Departments are treated as third-party countries for VAT purposes in transactions involving goods supplied to/from France or other EU member states.
To claim a VAT refund under Directive 2008/09/EC, it is not necessary to appoint a French VAT representative, but it is advisable to appoint a tax mandate to help you with the formalities. However, for claims under the 13th Directive, a VAT representative is required.
Procedure: Filing: The application must be submitted electronically (in French or English) via the French tax authorities (FTA)
A third-party service provider authorized by the claimant can submit the refund claim.
Eligibility for refund
A foreign taxable person is entitled to recover French VAT if the following conditions are met during the period to which the refund claim relates:
- The company does not have residence, its seat or a fixed establishment in France.
- The company has not carried out any supplies of goods or supplies of services in France, except the following supplies: ‒ Certain tax-exempt cross-border transportation or ancillary services from/to non-EU countries; ‒ Supplies for which VAT is due by the recipient in accordance with the rules in the EU VAT package; ‒ Supplies of goods/services made by a non-established entity to a VAT-registered recipient in France and subject to the domestic reverse charge mechanism; ‒ Supplies made under a VAT suspension regime; ‒ Telecommunications, radio and television broadcasting and electronic services, rendered to non-taxable customers that are established in France;
- The company must perform transactions giving rise to the right to deduct input VAT in the EU country where it is established.
VAT refund in Germany:
In Germany, VAT is referred to as “Umsatzsteuer” (USt) or “Mehrwertsteuer” (MwSt). The standard VAT rate is 19%, with a reduced rate of 7%, and a zero VAT rate applies to photovoltaic systems.
To claim a VAT refund under Directive 2008/09/EC or the 13th Directive, appointing a German fiscal representative is not required. Although a tax mandate is recommended to avoid mistakes and get your VAT refund smoothly.
Procedure: Filing: The application must be submitted electronically through the tax authorities’ portal of the claimant’s country of establishment: The VAT refund claim can be filed by the claimant or a third-party service provider, which can be based outside Germany.
Eligibility for refund
A foreign taxable person is entitled to recover German VAT if the following conditions are met:
• The company is not registered or liable to be registered for VAT in Germany.
• The company does not have residence, its seat or a fixed establishment in Germany;
• The company has not provided any taxable supplies/services in Germany, except for: ‒ Certain tax-exempt cross-border transport from/to non-EU countries and ancillary services; ‒ Supplies/services for which the reverse charge applies; ‒ Supplies subject to individual transport assessment; ‒ Electronically provided services where the foreign taxable person opted for application of the special regime for non- established taxable persons supplying electronic services to non-taxable persons; ‒ As of 1 July 2021, supplies which are declared under the (I)OSS procedure; ‒ Supplies made as intermediary party that are subject to an intra-community triangulation, where the last customer is obliged to pay the tax that becomes payable on the delivery to the last customer.
VAT refund in Spain:
In Spain, VAT is known as “Impuesto sobre el Valor Añadido” (IVA). The standard VAT rate is 21%, with reduced rates of 10% and 4%. Additionally, temporary VAT rates of 0% and 5% have recently been introduced.
The Canary Islands, Ceuta, and Melilla are not considered part of the EU for VAT purposes.
Procedure: Filing: The application must be submitted electronically through the tax authorities’ website of the claimant’s country of establishment:
The Spanish Form 360 must be submitted electronically by the claimant or an authorized representative. Electronic submission is possible only with a user certificate issued by the Spanish tax authorities, obtainable by individuals with a Spanish ID number (DNI) or tax identification number (NIE).
Eligibility for refund
A foreign taxable person is entitled to recover Spanish VAT if the following conditions are met:
• The claimant does not have residence, a seat or a fixed establishment in Spain from which it carries out taxable transactions; or it has a fixed establishment in Spain, but it is not involved in the transactions carried out within the VAT territory.
• It has not carried out any taxable transactions in Spain, except for certain tax-exempt cross-border transport from/to non-EU countries; or ‒ Supplies for which the reverse charge mechanism applies.
VAT refund in Belgium:
In Belgium, VAT is known as “Belasting over de Toegevoegde Waarde” (BTW) in Dutch and “Taxe sur la Valeur Ajoutée” (TVA) in French. The standard VAT rate is 21%, with reduced rates of 12%, 6%, and 0%.
To claim a VAT refund under Directive 2008/09/EC or the 13th Directive, appointing a Belgian fiscal representative is not required. Although a tax mandate it is recommended.
Procedure: Filing: The application must be submitted electronically through the portal of the Belgian tax authorities, Intervat: VAT refund application on Intervat. The application can be submitted in French, Dutch, or German, either by the claimant or a third party with a power of attorney.
Eligibility for refund
A foreign taxable person is entitled to recover Belgian VAT if the following conditions are met:
• The claimant is not registered, liable or eligible to be registered for VAT in Belgium;
• The claimant does not have residence, its seat or a fixed establishment in Belgium
• The claimant has not provided any taxable supplies in Belgium, except for: • Certain tax-exempt cross-border transportation from/to non-EU countries; • Supplies for which the reverse charge mechanism applies; • Supplies subject to occasional taxation; or • Electronically provided supplies where the foreign taxable person opted for application of the special regime for non-established taxable persons supplying electronic services to non-taxable persons.
VAT refund in Italy:
In Italy, VAT is known as “Imposta sul Valore Aggiunto” (IVA). The standard VAT rate is 22%, with reduced rates of 4%, 5%, and 10% applied to items such as health services, educational services, and essential goods. A 0% rate applies to services like insurance. Livigno, Campione d’Italia, and the territorial waters of Lake Lugano are not considered part of the EU for VAT purposes.
Procedure: Filing:
The application must be submitted electronically via the tax authorities’ portal in the country where the claimant is established. For Italian-established entities seeking refunds of VAT paid in other EU member states, claims must be submitted through the Italian tax authorities’ web portal.
The application can be filed by the claimant or an authorized intermediary. However, an EU entity can also file on behalf of the claimant if it meets specific requirements.
Eligibility for refund
A foreign taxable person is entitled to recover Italian VAT if the following conditions are met:
• The company is not registered or liable to be registered for VAT in Italy.
• The company does not have residence, seat or a fixed establishment in Italy (in the case of a branch with an Italian VAT number, a VAT refund may not be claimed under Directive 2008/09/EC for purchases made by the head office); and • The company has not carried out any taxable supplies in Italy, except for: ‒ Certain tax-exempt cross-border transport and ancillary services; or ‒ Supplies of goods and/or services to a person that is VAT- established in Italy at the time of the supply who applies VAT via the reverse charge.
VAT refund claim must be filed before 30 September of the calendar year following the year during which VAT was due. Late claims are not accepted. Eurotax can help you to file your VAT refund claim. Do not hesitate to contact us. You can find more information about VAT refund in the EU in our page.
PS: Businesses must stay aware of deadlines and related issues and may need to adjust their internal processes accordingly.
