The deadline for submitting refund applications for VAT paid abroad is approaching

Domestic tax subjects entitled to deduct VAT have an opportunity until 30 September 2020 to claim VAT refunds on the basis of invoices in 2019 with respect to purchases made in other member states of the European Union. After this peremptory deadline, the right to the refund is forfeited!

It often happens that a company uses a service or purchases a product in a member state where it is not otherwise engaged in any taxable economic activity. It is good to know that in such cases, tax subjects have the right to get the VAT paid abroad refunded, provided that the goods or services purchased abroad serve the purpose of their business activity they are pursuing in their country of establishment and entitling them to VAT deduction. In addition to EU member states, it is also possible to get VAT refunded in connection with transactions in third countries, on the basis of the principle of reciprocity (such third countries include Switzerland, Lichtenstein, Norway and, from 2019, also the Republic of Serbia and Turkey).

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