European Union: Reminder of the September 30 VAT Refund Deadline 

| Image Credits: AI visual of VAT deadline urgency

The EU VAT refund directive (Directive 2008/09/EC), effective from January 1, 2010, modernized the process for businesses established within the EU to reclaim VAT incurred in other EU member states. The directive allows businesses to submit VAT refund claims electronically via their local tax authority's portal, replacing the earlier hard-copy submission system (under the 8th VAT Directive). The updated process is intended to simplify and accelerate refund requests.

A key aspect of the 9th Directive is the annual deadline for submitting VAT refund claims. Businesses must file their claims by September 30 of the year following the VAT year. This deadline is firm, with no extensions typically granted, making timely submission essential. Claims must be filed electronically through the relevant tax portal of the country where the claimant is established.

VAT REFUND RULES FOR NON-EU BUSINESSES (13TH DIRECTIVE)

Non-EU businesses can also reclaim VAT under similar rules as EU businesses, but with important distinctions outlined in the 13th VAT Directive. Some key differences include:

• Certain countries, including Bulgaria, Croatia, Germany, Italy, Spain, Switzerland, and, in some cases, the UK, only allow VAT refunds to non-EU businesses if a reciprocity agreement exists between their country and the non-EU country where the business is based.

• In several EU member states, a fiscal representative may need to be appointed to handle VAT refund claims on behalf of non-EU businesses.

• Unlike the harmonized September 30 deadline for EU businesses, refund deadlines for non-EU businesses may vary. Typically, claims must be filed by June 30 or September 30 of the year following the VAT year. Notably, the UK imposes a December 31 deadline, while in the Netherlands, claims can be made up to five years after the tax point (usually the invoice date), though late filers lose the right to appeal in court if their claim is rejected.

• Non-EU businesses must generally support their claims with a certificate of "taxable status" rather than a VAT certificate. This document should confirm that the business is a taxable entity in its home country (e.g., form IRS 6166 for U.S.-based businesses).

SOURCE/RECOMMENDED READ:

Our favorite source to navigate VAT Refunds across the 27 EU member states, the UK, and several EFTA countries is published annually by Deloitte and available via below link.

• https://www.deloitte.com/be/en/services/tax/analysis/vat-refund-guide.html# 

With the September 30 deadline fast approaching, businesses must ensure their claims are properly filed and supported to recover VAT from the previous year.