We manage the tax payment such as VAT, through actions like VAT payment or VAT return.
Henry Towers has the vocation to maximize your business value, while keeping you safe and compliant, in line with your goal we know that in countries where your company is not a tax resident, you are entitled to claim a refund of VAT. In expenses such as: accommodation, restaurants, transport, attending trade fairs, congresses and exhibitions, professional purposes… and the best of it is that we only charge you part of the recovery. At Henry Towers services are. Very easy and you won’t have to worry about tax planning.
We have developed a very simple process to help you recover your taxes. We like lean processes that help you earn money. At Henry Towers we are on your side.
Information gathering and context understanding about VAT return
Our teams will be asking you for a power of attorney that we will prepare along with the receipts and invoices. This is all we need.
Execution process of VAT return
Our experts will be filing claims to the tax authorities to recover your VAT paid, this process will be transparent for you. Well you will see some income into your account as we recover the VAT’s.
VAT return Report
You will be updated of the progress and recoveries made. A final report will be delivered to you at the conclusion of the process.
This Directive lays down the detailed rules for the refund of value added tax (VAT), provided for in Article 170 of Directive 2006/112/EC, to taxable persons not established in the Member State of refund, who meet the conditions laid down in
This Directive shall apply to any taxable person not established in the Member State of refund who meets the following conditions:
- During the refund period, he has not had in the Member State of refund, the seat of his economic activity, or a fixed establishment from which business transactions were effected, or, if no such seat or fixed establishment existed, his domicile or normal place of residence;
- During the refund period, he has not supplied any goods or services deemed to have been supplied in the Member State of refund, with the exception of the following transactions:
- the supply of transport services and services ancillary thereto, exempted pursuant to Articles 144, 146, 148, 149, 151, 153, 159 or 160 of Directive 2006/112/EC.
- the supply of goods and services to a person who is liable for payment of VAT in accordance with Articles 194 to 197 and Article 199 of Directive 2006/112/EC.
This Directive shall not apply to:
- Amounts of VAT which, according to the legislation of the Member State of refund, have been incorrectly invoiced.
- Amounts of VAT which have been invoiced in respect of supplies of goods the supply of which is, or may be, exempt under Article 138 or Article 146(1)(b) of Directive 2006/112/EC.
Each Member State shall refund to any taxable person not established in the Member State of refund any VAT charged in respect of goods or services supplied to him by other taxable persons in that Member State or in respect of the importation of goods into that Member State, insofar as such goods and services are used for the purposes of the following transactions:
- Transactions referred to in Article 169(a) and (b) of Directive 2006/112/EC;
- Transactions to a person who is liable for payment of VAT in accordance with Articles 194 to 197 and Article 199 of Directive 2006/112/EC as applied in the Member State of refund.
Without prejudice to Article 6, for the purposes of this Directive, entitlement to an input tax refund shall be determined pursuant to Directive 2006/112/EC as applied in the Member State of refund.
To be eligible for a refund in the Member State of refund, a taxable person not established in the Member State of refund has to carry out transactions giving rise to a right of deduction in the Member State of establishment.
When a taxable person not established in the Member State of refund carries out in the Member State in which he is established both transactions giving rise to a right of deduction and transactions not giving rise to a right of deduction in that Member State, only such proportion of the VAT which is refundable in accordance with Article 5 may be refunded by the Member State of refund as is attributable to the former transactions in accordance with Article 173 of Directive 2006/112/EC as applied by the Member State of establishment.
To obtain a refund of VAT in the Member State of refund, the taxable person not established in the Member State of refund shall address an electronic refund application to that Member State and submit it to the Member State in which he is established via the electronic portal set up by that Member State.
The refund application shall contain the following information:
- The applicant's name and full address.
- An address for contact by electronic means.
- A description of the applicant's business activity for which the goods and services are acquired;
- The refund period covered by the application.
- A declaration by the applicant that he has supplied no goods and services deemed to have been supplied in the Member State of refund during the refund period, with the exception of transactions referred to in points (i) and (ii) of Article 3(b).
- The applicant's VAT identification number or tax reference number.
- Bank account details including IBAN and BIC codes.
In addition to the information specified in paragraph 1, the refund application shall set out, for each Member State of refund and for each invoice or importation document, the following details:
- Name and full address of the supplier.
- Except in the case of importation, the VAT identification number or tax reference number of the supplier, as allocated by the Member State of refund in accordance with the provisions of Articles 239 and 240 of Directive 2006/112/EC.
- Except in the case of importation, the prefix of the Member State of refund in accordance with Article 215 of Directive 2006/112/EC.
- Date and number of the invoice or importation document.
- Taxable amount and amount of VAT expressed in the currency of the Member State of refund.
- The amount of deductible VAT calculated in accordance with Article 5 and the second paragraph of Article 6 expressed in the currency of the Member State of refund.
- Where applicable, the deductible proportion calculated in accordance with Article 6, expressed as a percentage.
- Nature of the goods and services acquired, described according to the following codes.
In the refund application, the nature of the goods and services acquired shall be described by the following codes:
- Hiring of means of transport.
- Expenditure relating to means of transport (other than the goods and services referred to under codes 1 and 2).
- Road tolls and road user charge.
- Travel expenses, such as taxi fares, public transport fares.
- Food, drink and restaurant services.
- Admissions to fairs and exhibitions.
- Expenditure on luxuries, amusements and entertainment.
If code 10 is used, the nature of the goods and services supplied shall be indicated.
The Member State of refund may require the applicant to provide additional electronic coded information as regards each code set out in paragraph 1 to the extent that such information is necessary because of any restrictions on the right of deduction under Directive 2006/112/EC, as applicable in the Member State of refund or for the implementation of a relevant derogation received by the Member State of refund under Articles 395 or 396 of that Directive.
Without prejudice to requests for information under Article 20, the Member State of refund may require the applicant to submit by electronic means a copy of the invoice or importation document with the refund application where the taxable amount on an invoice or importation document is EUR 1 000 or more or the equivalent in national currency. Where the invoice concerns fuel, the threshold is EUR 250 or the equivalent in national currency.
The Member State of refund may require the applicant to provide a description of his business activity by using the harmonized codes determined in accordance with the second subparagraph of Article 34a(3) of Council Regulation (EC) No 1798/2003 (6).
The Member State of refund may specify which language or languages shall be used by the applicant for the provision of information in the refund application or of possible additional information.
If subsequent to the submission of the refund application the deductible proportion is adjusted pursuant to Article 175 of Directive 2006/112/EC, the applicant shall make a correction to the amount applied for or already refunded.
The correction shall be made in a refund application during the calendar year following the refund period in question or, if the applicant makes no refund applications during that calendar year, by submitting a separate declaration via the electronic portal established by the Member State of establishment.
The refund application shall relate to the following:
- The purchase of goods or services which was invoiced during the refund period, provided that the VAT became chargeable before or at the time of the invoicing, or in respect of which the VAT became chargeable during the refund period, provided that the purchase was invoiced before the tax became chargeable.
- The importation of goods during the refund period.
In addition to the transactions referred to in paragraph 1, the refund application may relate to invoices or import documents not covered by previous refund applications and concerning transactions completed during the calendar year in question.
The refund application shall be submitted to the Member State of establishment at the latest on 30 September of the calendar year following the refund period. The application shall be considered submitted only if the applicant has filled in all the information required under Articles 8, 9 and 11.
The Member State of establishment shall send the applicant an electronic confirmation of receipt without delay.
The refund period shall not be more than one calendar year or less than three calendar months. Refund applications may, however, relate to a period of less than three months where the period represents the remainder of a calendar year.
If the refund application relates to a refund period of less than one calendar year but not less than three months, the amount of VAT for which a refund is applied for may not be less than EUR 400 or the equivalent in national currency.
If the refund application relates to a refund period of a calendar year or the remainder of a calendar year, the amount of VAT may not be less than EUR 50 or the equivalent in national currency.
What is Value Added Tax (VAT)?
value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. VAT is most often used in the European Union. The amount of VAT that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed. The VAT value can be different from one country to another. In other countries this is similar to the sales tax.
Who is entitled to a VAT refund?
The vast majority of registered businesses, subject to VAT (or equivalent tax), are entitled to VAT refunds. However, the VAT refund rules vary significantly from country to country in terms of the rates/expense items eligible for refund etc. It is a complex legislation to deal with, although when managed by professional the process can seem very simple. If your business is based in the EU and VAT registered in your home country, you can qualify for a refund. Non-EU based organizations must be registered for business in their own country, to qualify for a refund. Some restrictions apply for specific sectors (public institutions, financial services) or for countries where there is no reciprocity agreement in place with the country of expenditure.
Can I recover VAT on personal travel expenses?
European regulations only allow VAT recovery for registered business entities. There is a separate refund system available for goods, not services, purchased for personal use, at Henry Towers we certainly take care of both on your behalf.
What expense items qualify for a VAT refund?
Even if refund rules vary from country to country. The main types of recoverable expenses fall within the following categories:
- Hotel and Meals
- Car Rental & Fuel
- Taxis & Public Transportation
- Conferences and Tradeshows
- Professional Fees & Marketing
- Inter-Company (travel delegations, services, seminars)
- Import VAT, Logistics and Warranty Products
- Drop-shipping, Installations and Maintenance contracts
- Telecom and Network Services
- Research and Development
- TV and Motion Picture Production
How does VAT refund process work?
You need to deal with each country you are filing a claim. A claim has to be filed with the local tax authorities, one per country, usually in the local language. For non-EU entities, the original invoices must be submitted with the claim, including signed refund forms.
What information do I need to provide for VAT refund?
For reach claim you will need to provide expense documentation in the form of original invoices and receipts together with the back-up expense reports if available or the credit card statements, and the filed form in local language.
How do I know that my information is safe and will be kept confidential?
We at Henry Towers have a strong commitment to data security. All client data is processed by our teams and all invoices and records are returned to you upon completion of the claim.
What resources of my time and manpower are required to achieve my VAT reclaims?
We ask you for a power of attorney so you don’t need to invest time on the process. Once we collect the information we don’t require any additional investment from your side.
How long does the process take?
VAT refund projects' vary significantly. However the average time-scale to complete our internal processes would be one to two weeks. The timing of the tax authorities vary from country to country with a range from 2 to 4 months, at Henry Towers we take care of the follow-up and keep you updated.
How much VAT can I expect to get back?
VAT rates and refunds eligibility vary from country to country. For example, VAT rates for transportation (taxi service) range from 6% to 25%. Estimates of the VAT refund potential can be done.
When should claims be made?
There are very strict deadlines defined by each tax authority. We have made an extract for you:
- Businesses based in EU - The deadline for submission of claims is 30th September of the following year.
- Non-EU based businesses - The deadline for submission of claims is 30th June of the following year
- UK (non - EU claimants) - The filing deadline for VAT refund claims on expenses incurred in the United Kingdom between July 1 of each year and June 30 of the following year is December 31 of this year (this deadline is only applicable for companies located outside European Union countries).