While every business owner wants to make the most out of their funds, getting vat refund for business can be a daunting process. These tips can make it easier.

Running a successful business can give you an intense feeling of fulfillment considering the high number of startups that fail every year even before they break even. However, this also comes with a good share of challenges including tax laws that may fluctuate from time to time.

The process of filling vat refund for business can be complicated especially when you are not familiar with the current tax regulations in a business block. To learn more about startups, click here.

Claiming vat refund for business

Value Added Tax (VAT) is applied to a majority of consumer goods in almost every country. Fortunately, tax laws allow businesses to get refunds on particular expenses even when your business is not registered in the country in question. Nevertheless, if you intend to file claims to get a refund for expenses not related to travel and entertainment, you may be required to be a registered business in the country.

Generally, a business that is registered for VAT can get a vat refund for business provided the expenses in question are reclaimable. Nevertheless, the rules and regulations that govern this issue are different in various countries especially about qualifying items as well as the related rates. For instance, if your startup operates within the EU but you’ve been registered in your home country getting a refund can be hassle-free.

Some business expenses may qualify for a refund while others will not. This is caused by variation in regulations about tax in different countries. As such, keeping track of applicable rates and items can be daunting especially when you are not receiving real-time updates about changes in tax laws for a specific region.

For instance, the tax laws in France allow you to get a vat refund for business hotel expenses limited to third parties. In the UK, you can only reclaim vat for hotel expenses on your employees. At the same time, Germany will allow you to reclaim vat on all your hotel expenses.

Tips for a seamless vat refund

When submitting your application, it is possible to improve your chances of successful vat refund for business. Before you seek a refund, ensure that you have the original invoices and they should bear the word invoice whether in English or any other language applicable to the tax offices. While some suppliers can give you a proforma invoice this document is not recognized when it comes to requesting for VAT refunds.

Instead of recording your personal address on the invoice, it is better to have your business address printed since this makes this document more credible. For compliance purposes, it is recommended that you have all the required documents but if you are not certain about the prevailing tax regulations, it is wise to reach out to an expert for professional assistance.

If you are making claims in a country located in the EU, it’s important that you file the application before 30th September. On the other hand, claims made to non-EU countries must be received prior to 30th June.


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