A blog about local and foreign VAT matters, best practices, and tips from practioners.

If your company has business activities in Europe then read the following story.

For an Indian back office operations center of a European conglomerate, executives and employees had frequent travel to Europe for business meetings and other activities. Given the complexities related to the foreign tax refund and lack of in-house expertise, the company did not file claims.

CB VAT took the charge and conducted a comprehensive audit of their business travel and related expenses for Europe. The audit uncovered that the company is eligible to claim refunds for business activities in last 5 years. With CB VAT team of experts managing the entire process, the company received € 100,000 in VAT refund.

Now if you happen to be a company who is losing in unclaimed foreign taxes for business activities in Europe then below are a few things you should know about foreign VAT recovery.

Eligibility requirements for VAT Recovery:

1. Your business which is being charged cannot be VAT-registered in that country
2. You can’t have a place of business or another residence in the country
3. You can’t manufacture any supplies in the country (with some exceptions)
4. You’ve paid €400 in VAT over 3 to 12 months for business travel expenses*
(*This is a general figure. The minimum amount you can claim varies from country to country.)

VAT refund eligible expenses:

1. Business Travel
2. Seminar and Professional Training
3. Conventions and Events
4. Exports
5. Aviation
6. Supplier Invoices

For more details on each of the activity, read our detailed blog article that covers different types of business travel activities and % of VAT allowed to be reclaimed.

How far back can a company go to reclaim foreign VAT?

It really depends on the travel expenses and countries your employees traveled to. For an example, Holland allows reclaiming foreign VAT as far back as 5 years. However, this will be truly uncovered when a complete VAT recovery audit is completed.

It’s time to find out how much of your company’s money is eligible for the refund . We work with India’s leading companies to maximize VAT refund for their business travel activities in Europe. You can simply fill out the free VAT recovery assessment form to get started.

Additional resources:
1. The Ultimate Guide to VAT Recovery for Business Travel in Europe
2. The Foreign VAT Refund Calculator

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