Frequently Asked Questions

What is Value Added Tax (VAT)?
VAT is a consumption tax levied on goods and services in many countries around the world. The national tax systems of Europe, Canada, Japan and Australia allow for a refund of VAT to most non-resident business entities, worldwide. In some instances, registration for VAT is required by the local country law in order to get a refund. Registration must be done prior to the business event.

Who is entitled to a VAT refund?
Most business entities around the world will qualify for a refund. However, the VAT refund rules will vary from country to country and are very complex. Contact Euro VAT Refund to verify your business entity's eligibility.

Can a private person qualify for a VAT refund?
Non-EU resident tourists can, in most cases apply for a refund of the VAT paid on gifts and merchandise bought for export out of the country. The refund should be requested at the last port before departure from the EU. Tourists are not entitled to a refund of the VAT incurred on services, such as hotel and car rental. This refund opportunity is available to the company only. For more information about tourist VAT refund go to www.globalrefund.com.

What items are eligible for a VAT refund?
Typical Recoverable Expenses are:
· Hotel and Transportation
· Trade Shows and Conferences
· Movie and TV Production
· Inter-Company (travel, delegation, services, seminars)
· Import VAT, Logistics, and Warranty Products
· Drop-shipping, Installation and Maintenance Contracts
· Global Contracts
· Telecom and Network Services
· Professional Fees and Marketing
· Research and Development

What does "VAT Registration" mean?
If a North American company conducts business in a country where VAT registration may be necessary. VAT registration should be done prior to the business event (however, it can, in some cases be done retroactively). VAT registration means that the non-EU company is required to:

  1. Register for VAT in the European country where the business activity takes place.
  2. Assess (charge) VAT on all invoices issued to the European customer.
  3. Deduct most of the VAT incurred from the European vendors.

If a company does not register when legally required, the VAT incurred from the European vendors is not refundable.

Examples of business activities that may require VAT registration are:
· E-commerce
· Trade Shows and Confernces
· Inter-Company (travel, delegation, services, seminars)
· Import VAT, Logistics, and Warranty Products
· Drop-shipping, Installation and Maintenance Contracts
· Global Contracts
· Telecom and Network Services
· Professional Fees and Marketing

Why should we use Euro VAT Refund's reclaim and management services?
The VAT refund rules are very complex and vary from country to country. The local tax authorities require that the application and the communication is done in their own language. Euro Vat Refund makes it convenient for your firm to collect the refund and manage the VAT registration when required. We take care of the local tax authorities, and understand their unique requirements and customs. We have the necessary procedures to expedite your claims for prompt and maximized payment, and to help you to structure your routines for on-going VAT refunds.

 

 

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