Offer for businesses

VAT REFUND for the costs of acquisition of goods and services in other EU countries

WHAT IS VAT-REF?

We prepare applications for enterprises who have incurred costs for gasoline, hotel, catering, transport, car rental, tickets for exhibitions, etc, in other EU countries and wish to reclaim VAT.

Enterprises which make purchases in other EU countries in connection with their business activity may be entitled to recourse according to the VAT-REF procedure, that is, seeking a refund on the VAT charged. There is one limitation – despite the validity of the VAT-REF procedure across the EU, the amount and terms of return depend on the regulations in force in each country.
Domestic enterprises have the right to apply for a refund of VAT paid on the acquisition of goods and services in another EU country within the framework of the so-called VAT-REF (Value Added Tax Refund) procedure. Submission of an application under the procedure requires fulfillment of several criteria, and the resulting decision depends on the regulations in force in each EU country. Despite the inconvenience, the procedure is worth it – in many cases, it is possible to recover up to 100% of the VAT paid on purchases in the EU.

Who can receive a tax refund?

To be accepted for a VAT refund under the VAT-REF procedure, the taxpayer must meet all following criteria:

  • it must be registered as an active VAT payer in Poland
  • it must make taxable sales or mixed sales in Poland (it may not conduct only tax-exempt activities)
  • it may not have an office in the EU country in which the expense was incurred
  • it may not be registered as an active VAT payer in the EU country in which the expense was incurred
  • the incurred expenses must be related to business (it may not be spending for private purposes)
  • it may not sell goods or services in the EU country in which the expense was incurred.

Qualifying expenses for the VAT-REF procedure:

  • purchase of fuel
  • renting a vehicle
  • other transportation expenditures
  • road tolls and road use charges
  • travel expenses, such as taxi fares and public transport fares
  • accommodation
  • food, drink and restaurant services
  • admissions to fairs and exhibitions
  • expenditure on luxuries, amusements and entertainment
  • others

Deadline for submission of applications

Applications for a VAT refund must be submitted by September 30th of the year following the year in which entrepreneur was granted the right to VAT return for expenses incurred abroad. It is also possible to apply for shorter periods than a year, depending on the return.

What is the application procedure?

A VAT-REF request is submitted to a foreign tax office via the Polish tax office with jurisdiction over the headquarters of the company. First, the Polish tax office verifies compliance with the formal criteria by the enterprise, then forwards the verified request to the foreign tax office for its consideration and decision on the return of VAT. The Polish tax office has a period of 15 days in which to transmit each received request. The VAT-REF Form may be submitted via the Internet using the e-Declarations system. The application must be accompanied by scanned invoices or other documents in .zip format1. It is not possible to request a paper version. VAT refund applications may be submitted for a period of between three months and one year. The length of time depends on the minimum amount requested. For a period of less than one year, the minimum refundable amount is 400 euros If the refund applies to an entire tax year, the minimum amount is reduced to 50 euros3. The enterprise should receive a decision on the tax refund application within four months of receipt of the request by the foreign tax authority. Unfortunately, not every application for a VAT refund is granted. To a large extent, it depends on the regulations in force in the EU country to which the application has been submitted. 1 Depending on your return and the amount of the invoice 2,3 Applies to countries using the Euro.

I’ve received a VAT refund – what’s next?

The tax refund should be counted as revenue on the date of receipt by the taxpayer of a transfer to the bank account indicated in the application.

Necessary documents for the application:

  • Company details
  • Information on the bank account where the return should be sent
  • Copies of invoices with the information of the supplier or service provider (name, address, tax number)

Price:

Price is assessed individually for each query and depending on the number of documents.