Foreign VAT 2016: have you reclaimed it?

You will probably know the feeling. We often arrange many things just in time, albeit a bit on the late side. We are about to go on holiday abroad and, a week before leaving, we discover that we need a valid passport or ID card. Or our car needs to be serviced (a holiday check) just before we go. The fuel tank is almost empty, we fill it up just before the fuel runs out, etc. Almost too late, but just in time.

The same goes for your business trip to, or stay in, another EU country. If you incurred costs in another member state of the European Union in 2016, you should reclaim the VAT before 1 October 2017. This deadline is approaching as well. If the Dutch Tax and Customs Administration receives your request after 30 September 2017, it is possible that the other EU country will no longer deal with your request. So make sure you arrange this now, if you have not already done so.

How can you reclaim the VAT from the other EU country?

Your request for reimbursement of VAT from another EU country, paid in 2016, must be filed through the electronic portal site of the Dutch Tax and Customs Administration before 1 October 2017. The Dutch Tax and Customs Administration will forward your request for reimbursement to the EU country in question. You will need log-in details to make the request for reimbursement. You can apply for these details from the Dutch Tax and Customs Administration if they have not been assigned to you before. According to the Dutch Tax and Customs Administration it can take up to four weeks before you receive the log-in details. You might be able to ask your intermediary to reclaim the foreign VAT for you through their account.

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According to the Dutch Tax and Customs Administration it can take up

to four weeks before you receive the log-in details.

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Conditions for reimbursement of VAT from another EU country

You can reclaim any VAT paid in another EU member state if the following conditions are met:

  • your company’s registered seat is in the Netherlands;
  • you do not file VAT returns in the EU country from which you are requesting VAT reimbursement;
  • the goods and services have been used for business activities that are subject to VAT.

If your company does file VAT returns in the foreign country, the VAT can be deducted there as VAT already paid.

Buitenlandse btw 2016

Refusal of request for reimbursement of foreign VAT for 2016

If your request is not received in time (a request made after 30 September 2017), there is a possibility that it will not be dealt with.

However, your request may also be refused if any of the following applies:

  • You are not an entrepreneur for VAT purposes;
  • Your company only performs VAT-exempt services;
  • You are exempt from administrative obligations with regard to VAT;
  • You are covered by the scheme for the agricultural sector and you do not comply with the conditions for the scheme for reimbursement concerning agricultural goods;
  • You should have applied for a VAT number in the EU country in question for a specific delivery or service.

How quickly will the foreign VAT be reimbursed?

The tax authorities of the EU country in which you are requesting a VAT reimbursement will respond within four months by sending you a decision on your request for reimbursement. A request can be denied, or it can be granted in full or in part. If the VAT is refunded to you, it will be paid into your account within ten working days after the end of the four-month period.

Need help with your request for reimbursement?

Help is available. If you have any questions in this respect, please contact one of your contacts at Visser & Visser accountants, auditors and consultants.