September 30th is the deadline for filing foreign VAT reclaims for businesses looking to recoup the money they are owed, by EU and some non-EU member states, for VAT incurred on their travel, expenses and invoices from 1st Jan 2019 – 31st December 2019. Anything not submitted by the deadline, will result in the opportunity to reclaim this VAT owed back by international tax authorities lost forever.
The VAT reclaim potential on foreign claims often amounts to 10’s of millions of pounds over a full year, and to accurately reclaim requires intricate knowledge of the most up to date regulations of each individual tax authority. No easy task.
Businesses able to navigate these complexities with the help of technology, have access to the additional revenue stream of foreign VAT returns, and can focus on growing their business and looking towards the future.
This year businesses must also be aware of the additional complexities involved with deadline extensions in place due to the impact of Covid-19.
EU registered businesses (directive 2008/09/EC): Filing reclaim for expenses in EU countries (including UK) outside their home country. For example, a business based in Italy reclaiming VAT from expenses and accounts payable (AP) invoices that took place in Germany. This can be filed electronically.
Businesses registered outside the EU (directive 85/560/EEC, also known as the 13th Directive): Filing for foreign VAT reclaim on expenses and AP invoices that took place in some EU countries. For example, A US based company claiming expenses from Belgium. Note that most tax authorities in the EU member states of refund require that the original paper invoices are enclosed with the application or alternatively sent upon request shortly thereafter.
COVID-19 related extensions: All businesses that normally file VAT reclaim on June 30th in France (under either directives) can file September 30th. Germany, Sweden, Switzerland, Monaco and Serbia may also allow a filing extension from June 30th to September 30th, provided that the business provides sufficient documentation that the delay is related to COVID-19. Businesses that are filing late reclaim must still follow the rules of the directive if it relates to paper receipts required for non-EU filings and electronic for EU filings.
Taxback International have partnered with SAP Concur to make the Foreign and Domestic VAT reclaim process for travel, expense and invoice spend as simple as one click to enable our customers to make the entire process quick and seamless. From the moment spend is captured in SAP Concur, to the VAT analysis and filing of claims, our technology ensures to maximise your reclaim potential. To find out more visit our website.
SAP Concur and Taxback International are also hosting a joint webinar on the 2nd September at 11am BST to provide detailed information on foreign and Domestic VAT reclaim process for travel, expense and invoice spend.