Products ordered in other European countries include the respective VAT of the country, which can be up to 25% of the product price (e.g. in Sweden). If an order is sold directly via Amazon, Amazon deducts the foreign VAT and recalculates the price with the German VAT. For all other retailers and online stores, the VAT of the respective country is charged, which means that a customer pays VAT that is up to 6 percentage points higher than in their own country.
Entrepreneurs who are active abroad and have paid VAT there can obtain a refund of foreign VAT.
The requirements are: The applicant must be an entrepreneur within the meaning of VAT law. The entrepreneur must not be resident in the country in question and must not have carried out any taxable transactions there during the remuneration period.
The input tax amounts must
The applicant must be an entrepreneur within the meaning of VAT law.
The entrepreneur must not be resident in the country concerned and must not have made any taxable transactions there during the refund period.
Input tax amounts must be documented by original invoices.
A tax number certificate from the relevant tax office is required.
Minimum amounts and specific input tax deduction restrictions must be observed.
Third country: Submit application directly to the foreign reimbursement authority, enclose original invoices and tax number certificate, observe minimum amounts, application deadline by June 30 of the following year.
EU: Application via the BZSt portal, separate applications for each member state, electronic transmission, observe minimum amounts, application deadline by September 30 of the following year.
How high is the refund of foreign VAT?
The amount of the refund varies depending on the amount of input tax claimed and the specific regulations of the respective country, whereby restrictions for certain expenses must be taken into account.
Questions and answers on foreign VAT refunds
Who can get a refund of foreign VAT?
German entrepreneurs can obtain a refund of foreign VAT if they are active abroad and pay VAT there.
What are the requirements?
- Entrepreneur status: The applicant must be an entrepreneur within the meaning of VAT law.
- No residence: The entrepreneur must not be resident in the country concerned and must not have carried out any taxable transactions there.
- Original invoices: Input tax amounts must be evidenced by original invoices.
-
Tax number: Confirmation of the tax number by the responsible tax office is required.
How do I get a refund?
-
Application in a third country:
- Application directly to the foreign reimbursement authority.
- Use of the corresponding application form in the national language.
- Proof by original invoices and tax number certificate.
- Observe minimum amounts and application deadlines (by June 30 of the following year).
- Application directly to the foreign reimbursement authority.
-
Application in EU member states:
- Application via the electronic portal of the Federal Central Tax Office (BZSt).
- Separate applications for each Member State.
- Application deadline: September 30 of the following year.
- Minimum amounts (50 euros per year or 400 euros per quarter).
-
How high is the refund of foreign VAT?
- The amount of the refund depends on the input tax amounts claimed and the country-specific regulations. In many cases, there are restrictions on certain expenses such as travel costs, entertainment costs and vehicle costs.
