VAT RECOVERY PROCEDURE FOR EU BUSINESSES IN ANOTHER MEMBER STATE (9th Directive)
Reimbursement of foreign VAT: a right for European companies
European companies benefit from the right to reimbursement of VAT paid in Member States where they are not established. However, this reimbursement is subject to certain conditions:
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- During the period covered by the refund request, the company must not have carried out any operations requiring VAT registration in that Member State.
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- VAT must have been regularly invoiced by the supplier or service provider.
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- The VAT concerned must relate to expenditure on purchases of goods or services used for operations giving right to deduction.
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- VAT must not relate to expenses for which the deduction of VAT is excluded by the regulations of the Member State where the VAT was paid.
The steps to follow to obtain this reimbursement are as follows:
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- The procedures for submitting VAT refund requests, according to the so-called “ 9th Directive ” procedure, are uniform in all EU member states . However, the minimum amounts of refundable VAT and expenses eligible for reimbursement may vary from country to country.
| Periods for which a refund may be requested | 1 calendar year maximum3 months minimum |
| Minimum amounts of refundable VAT | Change depending on the country |
| Application submission deadlines | September 30 of the year following the repayment period |
| Application processing time | 4 months maximum (extended to 6 or even 8 months if additional information is requested) |
| Supporting documents to be produced | Copy of invoices and customs documents mentioning VAT |
| Expenses eligible for reimbursement | Change depending on the country |
Companies established in the European Union can make their VAT refund requests through dedicated portals.
Each EU country has set up its own portal , and businesses must submit their requests to the portal of their country of establishment for all VAT refund requests in other EU member countries.
It is essential to emphasize that all foreign VAT refund requests must go through this portal, regardless of the Member State where the VAT was paid. Thus, the Member State of establishment serves as an intermediary between its companies and the Member States concerned by the reimbursement.
However, it should be noted that depositing on the portal does not automatically guarantee reimbursement. The portal is simply a means of transmitting the request. The tax authority of the country where the VAT was paid is responsible for processing the refund request. If additional information is necessary, the administration of the country concerned sends requests for additional information in its official language, and the company has a deadline to respond.
It is therefore essential to carefully monitor the application process.
Drawing :
Let’s take the example of a French company having paid VAT in Spain and Italy in 2023, without carrying out any transaction requiring VAT registration in these countries.
To obtain a refund of Spanish and Italian VAT, the French company must go to the electronic portal of the French tax administration before September 30, 2024 and complete two separate refund request forms, one for Spain and one for Italy. These requests will then be forwarded to the tax administrations of the respective countries for analysis.
If additional information is required (which is often the case when first requesting a refund), tax authorities send requests for additional information to the company electronically, in their respective language. The company then has a period of time to respond in the language of the country concerned.
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