Frequently Asked Questions

Our Frequently Asked Questions resource answers common VAT queries and defines VAT terms and topics.

 

  • What is VAT?

    Value Added Tax (VAT) is an indirect tax levied on the supply of goods and services that can add between 5 – 27% to your company’s business travel expenses.
    Applicable VAT rates vary from country to country and the tax is recognised under different names, including IVA (Italy), GST (Canada, Australia), MWST (Germany, Austria), TVA (France, Belgium) and MOMS (Scandinavia).

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  • What are the types of business expenses I can recover VAT on?

    Businesses can reclaim VAT on a range of eligible expenses, which can be defined in three different groups: Travel & Entertainment Expenses, Accounts Payable Invoices and Intercompany Expenses.

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  • What countries offer VAT refunds?

    Taxback International provide foreign and domestic VAT reclaim in all countries where there is a refund mechanism, among them all 28 EU member states.

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  • What information is needed on a VAT compliant invoice?

    Depending on the type of application, an original or scanned invoice is needed to support your claim.

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  • What documents are needed to file a VAT Reclaim application?

    Taxback International can manage your organisation’s reclaim process when you supply the following documents to us – invoice copies, letters of authority, certificate of taxable status and original invoices.

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  • How long does it take to receive a VAT refund from a tax authority?

    All tax refunds are issued on discretion of the tax authorities. Depending on where your costs have been incurred, you may receive your VAT refund in as little as four weeks.

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  • How much does the Taxback International service cost?

    Our VAT recovery solutions are designed to fit the unique needs of companies of all sizes, offering market-leading pricing options tailored to your needs.

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  • Is there a minimum claim threshold?

    No. Taxback International does not operate a minimum claim threshold, we will recover all the VAT possible to put back into your bottom line – no matter how small.

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  • What are the advantages of using Taxback International?

    Taxback International combines innovative technology, deep industry expertise and value-added partnerships to deliver comprehensive VAT solutions.

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  • When should my business be registered for VAT in another country?

    Your business is eligible or liable to VAT register in another country if you are carrying out taxable supplies in that country, and the obligation to account for VAT is not shifted to your customer.

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  • Can I Reclaim VAT if my business is registered or required to be registered in the country where business expenses are incurred?

    Yes. You can reclaim VAT by reporting the VAT on purchases in your VAT return in the country your business is registered or in the country where you are required to register your business.This may result in either over-payment that could be claimed, or in a VAT credit that can be offset against VAT liabilities.

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  • What are the benefits of VAT registration?

    Once your business has become VAT compliant by registering for VAT, it is also entitled to claim back VAT on purchases which it would otherwise not be able to get back.

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  • What obligations do businesses who are registered for VAT have?

    Businesses need to make sure that they are fulfilling their obligations in the jurisdiction they are VAT registered in, such as issuing compliant VAT invoices, keeping proper records, filing VAT returns and other tax declarations on time.

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  • Can Taxback International help my business if I am already registered for VAT?

    International VAT can be complex, time-consuming and challenging. Our international team of tax specialists will ensure that your VAT is managed in the most effective, cost-efficient and law compliant way.

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  • Why can businesses reclaim VAT?

    In order to encourage international trade, the European Union introduced legislation in the 1980’s enabling businesses to claim back VAT paid on expenses incurred while doing business in member states.

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  • How much VAT can businesses reclaim?

    Businesses can reclaim the majority of VAT paid on eligible expenses, subject to fulfilling nominal criteria. The applicable VAT rate varies from country to country, as does the list of eligible business expenditure.

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  • What is ViDA?

    The European Commission has proposed ViDA as a framework aimed at modernising the existing VAT system.

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  • What is Digital Reporting Requirements?

    Digital Reporting Requirements is a pillar of ViDA and entails the electronic submission of transactional data to tax authorities.

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  • What is the Platform Economy?

    The Platform Economy encapsulates the ecosystem of digital platforms that facilitate transactions between buyers and sellers.

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  • What is Single VAT Registration?

    Single VAT Registration is a pillar of ViDA and aims to simplifying VAT compliance for businesses operating across multiple jurisdictions.

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  • What is the VAT Gap?

    The VAT Gap in Europe represents the shortfall between the expected VAT revenue and the actual revenue collected.

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