FAQ about VAT Recovery Worldwide
Is our company eligible for VAT refunds?
In order to be eligible for VAT refunds, the following conditions have to be met:
Your company is registered as a taxpayer with the tax authority in its resident country.
Your company does not have any sales within the country where VAT is charged.
Your company does not have a division or branch office registered as a taxpayer in the country where VAT is charged.
Your company does not manufacture goods in the country where VAT is charged.
Your company or organization is engaged in commercial activities for a profit in the country where VAT is charged. (Depending on its activities, a non-profit organization may be eligible for a VAT refund.
How long does it take to get a refund back?
The 13th Directive (EU VAT law) states that the member states are obligated to refund VAT within 6 months. However, there are some countries in which it may take longer than 6 months. On the other hand, there are some countries in which it usually takes only two months to get a refund back; Canada, Japan and Australia.
How is your fee structured?
1) VAT Refunds
We do not ask you for an advance payment. Our fee is based solely on the amount of actual VAT recovered. Your fee is a percentage of the actual recovered VAT amount. After refunds are directly deposited into your bank account by the VAT authorities, we will issue an invoice to your company. This procedure guarantees transparent transactions and prompt refunds for your company.
2) Fiscal Representation, Research and Consultation
We will provide your company with an estimate of our fee after the free initial consultation.
Can our company get our invoices from the tax authorities?
Yes, in most cases, your original invoices will be returned to you from the tax authorities after your company receives its refund.
What is a VAT number? Is my company required to have the VAT number?
A VAT number is a VAT payer's number given to a taxable enterprise in the EU countries. If your company is determined to be a taxable enterprise in a given country, it is mandatory to be registered for VAT purposes.
How often may my company reclaim VAT?
In the EU countries, depending on the amount of VAT incurred, your firm can reclaim VAT quarterly or annually. Outside the EU, your company may submit a refund claim once a year.
How should the refund income be accounted for in my company's accounting?
The refund income should be entered under extraordinary income or refunded VAT.
Should we expect any problems with our tax authority if we send our original invoices to GVS?
No. Temporary absence of your original invoices from your company should not cause any problems. We advise your company to make copies of your invoices before sending them to us.