Domestic VAT Recovery

What is Domestic VAT?

Businesses incur VAT (Value Added Tax) on domestic or local business travel and other business-related expenses. You can recover this VAT as a direct business expense through your local VAT returns in countries where:

You are established and registered; or
not established but VAT registered

Many countries operate a backdated domestic VAT refund system, allowing for refunds up to 6 years after the expense is charged.

*Subject to deduction rules and restrictions per country.

Businessman Refueling Gas Tank in Black Car

Eligible Travel and Entertainment expenses.
- Accommodation
- Parking
- Meals
- Professional services
- Fuel
- Car rental and taxis
- Public transport
- Conferences
- Training courses and seminars
- Local purchases of goods

Eligible MICE-related expenses.
- Meetings
- Incentives
- Conferencing
- Exhibitions
Non travel related invoices.
- Supplier invoices related to domestic / local spend such as office stationery or office canteen supplies.
- Eligible Accounts Payable (AP) spend

Countries with a backdated domestic VAT mechanism

European

European
North and South America
Middle Eastern
Asian and Oceania

European
North and South America
Middle Eastern
Asian and Oceania

Austria
2 years and 6 months
Belgium
3 years
Bulgaria
1 year
Croatia
3 years
Cyprus
3 years
Czech Republic
3 years
Denmark
3 years
Estonia
3 years
Finland
3 years
France
2 years
Germany
4 years
Greece
5 years
Hungary
5 years
Ireland
4 years
Italy
4 months from tax year end
Latvia
3 years
Liechtenstein
5 years
Lithuania
3 years
Luxembourg
3 years
Malta
5 years
Netherlands
5 years
Norway
3 years
Poland
5 years
Portugal
2 years
Romania
5 years
Serbia
5 years
Slovakia
5 years
Slovenia
1 year
Spain
4 years
Sweden
5 years
Switzerland
5 years
United Kingdom
4 years

Argentina
4 years
Bolivia
8 years
Canada
4 years
Chile
3 years
Columbia
2 years
Costa Rica
4 years
Ecuador
5 years
Guatemala
3 months
Mexico
5 years
Peru
12 months
Uruguay
4 years

India
9 months
Kingdom Saudi Arabia
5 years
Turkey
Current year
United Arab Emirates
5 years

Australia
4 years
China
No time limit
Indonesia
2 years
Japan
4 months from year end
New Zealand
2 years
Philippines
1 year
Russia
3 years
Singapore
5 years
South Korea
5 years
Taiwan
10 years
Thailand
3 years

The challenge of reclaiming local VAT

We work with major global enterprises, and as a first step we complete Domestic VAT Health Checks for companies who are either using a competitor or filing themselves.

Our insights have found that 60% of companies are not making full or correct Domestic VAT submissions.

Four consistent causes emerged:

VAT was deducted but not valid, therefore non-compliant with Tax Office laws
VAT was incorrectly deducted and thus ineligible, resulting in companies reclaiming a high amount of ineligible VAT
VAT that was eligible, was not deducted resulting in a loss in the reclaim for the company
All smaller expenses were missed as they were regarded as too difficult to reclaim on or the company didn’t have enough resources to manage the high amount of these small transactions

Work with Taxback International

Domestic VAT reclaim is a major lost opportunity for many companies to easily generate significant revenue. Our insights have found that 60% of companies were not making full or correct domestic VAT returns to their local tax office before working with us.

Understand your businesses’ Domestic VAT refund potential.

Taxback International will provide you with a free sample analysis, which will highlight where we identify missed Domestic VAT reclaim opportunities within your VAT process.
We integrate with all Expense Management Systems meaning there is no IT implementation needed.
We do all of the analysis, preparation and provide your report in the style required by your local tax office for inclusion in your local VAT return.

Download more information

Recover VAT on your domestic business spend to unlock additional revenue.

What is Domestic VAT?

Eligible Travel and Entertainment expenses.

Eligible MICE-related expenses.

Non travel related invoices.

Speak to one of our VAT experts to discover more.