How does the input tax refund work for exports to third countries?
May 10, 2023 | 40,00 EUR | answered by Tobias Waldmüller
Dear tax consultant,
my name is Artur Ahlert and I am a self-employed entrepreneur in the field of online trading. Lately, I have been conducting more business with customers from third countries and I am unsure how the input tax refund works for exports to these countries.
So far, I have correctly paid the sales tax on my income, but now I want to ensure that I also maximize the possibility of input tax refund for exports to third countries. I want to make sure that I do not miss out on any financial benefits and that I comply with tax regulations correctly.
My concern is that I may make mistakes in input tax refund and suffer financial losses as a result. Therefore, it would be very helpful for me if you could explain to me how the input tax refund works for exports to third countries and what specific steps I as an entrepreneur need to take.
Additionally, I would like to know if there are any special forms or documents that I need to fill out for input tax refund for exports to third countries and how to submit them correctly.
Thank you in advance for your support and assistance on this important matter.
Sincerely,
Artur Ahlert
Dear Mr. Ahlert,
Thank you for your inquiry regarding the input tax refund for exports to third countries. As a tax advisor specializing in input tax, I am happy to assist you and provide you with detailed information on this topic.
When exporting to third countries, you generally have the opportunity to claim a refund of the input tax you paid for the import of goods or services. This means that you can reclaim the VAT that was invoiced to you, as these transactions are outside the German tax territory and therefore not subject to German VAT.
To maximize the use of input tax refunds for exports to third countries, you should first ensure that you meet all necessary requirements. This includes, among other things, ensuring that the export deliveries actually took place and that you have all the necessary documentation and evidence.
For input tax refunds for exports to third countries, you typically need to use a specific form called "VAT refund procedure for entrepreneurs based in third countries." You must fill out this form correctly and submit it with the required supporting documents in order to request the input tax refund.
It is important that you provide all information completely and accurately, as otherwise your application for input tax refund may be rejected. Required documents include invoices, shipping documents, and customs documents proving the export deliveries.
I recommend contacting your local tax office for further information on the exact process of input tax refunds for exports to third countries and to ensure that you are following all necessary steps correctly.
I hope this information helps you with your inquiry. If you have any further questions or need assistance, please do not hesitate to contact me.
Best regards,
Tobias Waldmüller
