Companies established outside the EU now have under two months to submit refund claims in most EU Member States1 for VAT paid in 2015 (EU-based businesses have until the end of September).
Deadlines are applied strictly by tax authorities and cannot be extended. Failure to submit the required documentation in time will lead to the loss of otherwise refundable VAT.
For businesses, the preparation and submission of the VAT refund claims can be a time-consuming and potentially burdensome process.
The process typically includes:
- identifying the relevant transactions and collecting the original paper invoices needed to be submitted with the VAT refund claims
- reviewing invoices to confirm their eligibility for VAT recovery
- preparing the (mostly paper-based) forms in the local language of the countries of refund and submitting them with the required back-up documentation
The time and resources needed to go through these various steps should not be underestimated and, with only a few weeks left till the end of June, companies should start working on this, especially if they use a manual process.
As an alternative, working with a provider using data analytics and a solid technology-based process can maximise the likelihood of recovering the VAT you are entitled to recover. For an overview of KPMG's approach in the VAT recovery area, please contact me or visit our webpage.
Are you leading your industry in big data solutions? Read about current trends in big data here.
Footnotes
1. For the (former) '8th' Directive, a harmonised deadline applies across EU Member States, i.e. of 30th September, while for the 13th Directive VAT refund claims, the EU Member States apply different deadlines as summarised in the table below:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.