FAQ on VAT

Q What is VAT?
A VAT (Value Added Tax) is an indirect tax on consumer expenses. VAT is charged and collected at each stage of the production process and not only on the final sale. VAT is normally borne by the consumer in the price paid for goods and services. It is also charged on business transactions.

Q Can I get a refund?
A Many countries have a VAT system implemented. The opportunity to recover VAT on services (hotel accommodation, car rentals, petrol, or meals) is limited to Europe, and few Asian countries. Most businesses qualify to obtain refunds, which must be filed in the company name. Individuals leisure travels for are cannot recover expenses on services but can recover the VAT paid on goods (souvenirs, clothing) which are exported from the country of origin.

Q What expenses are eligible for refund?
A Expenses which are eligible varied from country to country but may include hotel accommodations, car rentals, meals, petrol, conference and trade show costs, professional fees, training courses and inter-company expenditures. 

Q Which countries allow refunds?
A The following countries will allow for non-resident companies to file for refunds: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Korea, Liechtenstein, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the UK.

Q What is required to obtain a refund?
A The applicant must submit an original invoice from the foreign service provider. Credit card statements, carbon copies, or duplicates will not be accepted.

Q How long does refund process take?
A Typically, it takes about six to eighteen months to receive a refund. The amount of time varies from country to country.

Q Can I get my original invoices returned?
A The European authorities return original invoices on all paid claims.

Q Is there a deadline?
A Most governments impose one of two filing deadlines, June 30th or December 31st, depending on the location.

Q Are there any fees?
A VATSHOP offers risk-free service for all clients. Service fees will be applied only when a claim has become successful.