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VAT refund for companies established in the European Union under the 8th Directive

How can companies established in the EU recover VAT incurred in another Member State?

The refund of foreign VAT is a right

Companies established in the EU are entitled to recover VAT paid in other Member States where they have no establishment. This refund is only possible if the following conditions are met:

What is the procedure?

The procedure for submitting a VAT refund claim under the 8th Directive is identical in all EU Member States, with the exception of certain details such as the minimum refundable amount and the categories of eligible expenditure, which may vary from one country to another.

Period covered by the claim	Maximum of one calendar year, minimum of three months
Minimum amount of refundable VAT	Varies according to the country
Deadline for submitting claims	30^th September of the year following the period covered
Processing time for the claim	Maximum of four months (may be extended to six or eight months in the event of a request for additional information)
Supporting documents to be provided	Copies of invoices and customs documents mentioning the VAT
Expenditure eligible for refund	Vary according to the country

How to submit a VAT refund claim?

VAT refund claims are submitted via an electronic portal. Each EU Member State has its own portal, and companies must submit all their claims through the portal of their country of establishment, for all other Member States concerned. All claims for foreign VAT refunds must be transmitted via this single portal, regardless of the country in which the VAT was paid. In practice, the Member State of establishment acts as an intermediary between its companies and the Member State responsible for processing the claim. IMPORTANT: submission via the portal does not guarantee the VAT refund. The portal is merely a transmission channel. The tax authorities of the country of establishment do not intervene in the processing of the claim. Once transmitted, the claim is processed by the tax authorities of the country where the VAT was charged. These authorities may request additional information electronically and in their official language. The company must respond to any such request in the language of the country of refund within one month; otherwise, the claim will be rejected. Strict compliance with the procedure is therefore essential. Example: In 2019, a company established in France incurred VAT in Spain and Italy. It did not carry out any activity requiring VAT registration in either of these countries. To recover the Spanish and Italian VAT, the French company must, before 30^th September 2020, log in to the electronic portal provided by the French tax authorities and complete two separate claim forms: one for Spain and one for Italy. These will be forwarded to the Spanish and Italian authorities for processing. If the Italian or Spanish tax authorities request additional information (which is almost systematic for a first claim), they will send their questions electronically to the French company, in Italian and Spanish respectively. The company then has 30 days to reply by email to each of the authorities, in the corresponding language.

Choosing ASD Group is a reliable decision

Recovering intra-EU VAT when your company is established in another Member State can prove to be lengthy and complex.

Checking that you meet all the local refund conditions requires a thorough examination of your company’s activities and of each invoice including recoverable VAT.

A single error can jeopardise the entire claim (unless you lodge an appeal before the local administrative court).

This is why calling on a tax representative is essential for the success and speed of your refund claim. ASD Group has twenty years of experience in VAT refunds, a network of agencies covering the 27 EU Member States, and specialists with a perfect command of local regulations. Working with ASD Group means benefiting from a single partner who handles every stage of your refund claim:

Review of taxable activities and assessment of recoverable VAT;

Review of supporting documents for expenditure;

Preparation and submission of the claim;

Monitoring of the claim with the local tax authorities and responses to any requests for additional information;

Receipt of the refund.

ASD Group is also an innovative option

Tax administrations are continuing their transformation and digitisation. In order to remain at the forefront of these developments in digital taxation, ASD has developed online service platforms that simplify the management of obligations and exchanges between taxpayers and the tax authorities.

Why work with ASD Group: the benefits

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