How does the input tax refund for EU cross-border transactions work?
April 29, 2024 | 50,00 EUR | answered by Lina Sauer
Dear tax advisor,
My name is Ammelie Weber and I run a small business that sells goods within the EU. Lately, I have noticed that my VAT costs for transactions in other EU countries have significantly increased. I have heard that there is a possibility to reclaim the input VAT I have paid in the EU countries. However, I am unsure of how exactly this process works and what steps I need to take for it.
Currently, I am facing a situation where I have to pay high VAT for my transactions in other EU countries, which is significantly impacting my profits. I am worried that I may be losing money that I could actually reclaim. That is why I am looking for a solution to efficiently reclaim the input VAT for my transactions in other EU countries.
Could you please explain to me how the input VAT refund for EU transactions works? What documents do I need for this and what deadlines do I need to comply with? Are there any specific requirements that I need to meet to get the input VAT refunded? I would like to learn more about this topic in order to optimize my VAT costs and make my business more economically successful.
Thank you in advance for your help.
Kind regards,
Ammelie Weber
Dear Mrs. Weber,
Thank you for your inquiry regarding the input tax refund for transactions in the EU. It is understandable that you are concerned about the VAT costs and are looking for ways to optimize them. I am happy to explain to you how the input tax refund works and what steps you need to take for it.
The input tax refund allows you to reclaim the VAT you have paid in the EU for your transactions. This is particularly important for companies like yours that sell goods within the EU, as the VAT costs can be significant. To recover the input tax, you need to submit an application for an input tax refund.
For the input tax refund, you will typically need the following documents:
- Invoices for the VAT paid in the EU
- Receipts for the transactions made in the EU
- Evidence of your company status and VAT identification number
- Possibly other specific documents depending on the requirements of each EU country
It is important to adhere to the deadlines for the input tax refund, as they may vary depending on the EU country. Generally, you must submit the application within a certain period after the end of the calendar year for which the input tax is to be refunded.
To be eligible for the input tax refund, you must meet certain requirements. This includes, among other things, not being tax resident in the EU and having actually paid the VAT. It is crucial that you submit all the required documents correctly and completely to ensure a smooth processing of the input tax refund.
I hope this information is helpful to you and enables you to efficiently recover the input tax for your transactions in the EU. If you have any further questions or need assistance, I am happy to help.
Best regards,
Lina Sauer
