VAT REFUND SERVICES
As VAT is regarded as a consumption tax, the export of goods from the country or the provision of services abroad (for the EU - outside the Community) is generally exempt from VAT or tax is refunded.
In recent decades there is broadening of the practice of VAT refund to foreign nationals upon/after they leave the country vendor. The end user, who buys goods in the country where he/she lives, is not entitled to a VAT refund. This does not apply to individuals (subject to certain conditions) and legal persons registered under the VAT Act. They are entitled to a deduction or refund of the tax on purchases of goods or services.
Take for example a trip of an employee of your company to the UK. During his/her trip, he/she spends money on services and goods and you pay value added tax at a rate of 15 percent. If during a mission 5,000 pounds were spent, the VAT you have to pay amounts to about 650 pounds. For example, you send an employee on a mission in the UK each month and his/her travel expenses are about 5,000 pounds, the result would be 7,800 pounds paid annually on VAT. This amount can be saved through the "VAT REFUND service", which was introduced in order to promote and facilitate international trade.
Entitled to the refund of VAT are:
- Organizations registered for VAT purposes and established in the Community,
- Organizations registered for VAT purposes and not established in the Community.
In practice, the large majority of organizations in the world can benefit from this service.
If your business is located:
- On the Community territory,
- outside the Community territory.
There are no restrictions on the type of business. The only pre-condition is that your organization is registered for VAT purposes.
Who can recover VAT, which is paid abroad?
- Most organizations that have VAT registration can take advantage of this service. Please note that the refund rules are different in each country.
What costs abroad must my organization have in order to recover VAT?
- Exhibitions, conferences, seminars, trainings
- Professional Services
- Rental vehicles
- Entertainment business
From which countries can VAT be recovered?
- From each Member State of the European Union and some countries outside it, this depends on agreements between countries. For example, if your organization is registered in Bulgaria, you can recover the VAT from all the countries of the European Union but also from Canada, Iceland, Macedonia, Norway, South Korea and Switzerland.
What is the procedure for VAT refund?
- The procedure is easy and convenient as it requires no effort and especially money from you. The only things we need are:
- Scanned copies of your invoices for costs incurred in the EU.
- Original invoices from your travels outside the EU.
- After completion of the process, are returned to you along with the tax reimbursed. For your convenience we can visit you on the spot.
Is there a deadline?
- For EU countries the deadline is 30.09 of the year following the refund period. I.e. if you want to recover VAT in 2014, the invoices should be sent to us no later than 01.08.2015 to enable us to meet the deadline set by the tax authorities of the respective country.
- For countries from outside the EU the deadline is 30.06 the year following the refund period
How many times a year may I apply for a VAT refund?
- This depends on the law of the country in which you incurred expenses, but in most cases you are entitled to 5 times a year. Of course, this depends on the amount of the refund to which you are applying.
How long until I get my money?
- Here, again, it depends on the country in which you incurred expenses, but money is usually received within 6 months after filing the claim.
What is your fee for the service?
- Integra Group Ltd. offers flexible commissions which depend on the amount you wish to recover. The commission is paid only when your tax is refunded.