Deadline fast approaching to reclaim foreign VAT

Opportunity to reclaim foreign VAT

When an Irish tax registered business pays VAT in another European member states it is not possible to claim a credit for this VAT on an Irish VAT return.   However, EU VAT law does provide a mechanism whereby a business may claim foreign VAT paid in another member state. 

Requirements

From 1st January 2010, all Irish applicants wishing to make a claim for a refund of VAT in another EU State must be registered for VAT with the Irish Revenue and they must have access to the Revenue Online Service (ROS).  You can apply to be a ROS customer at www.ros.ie. 

If your VAT returns are already filed on ROS then you (or your agent) will automatically be able to file electronic VAT refund applications. Paper based applications are no longer accepted.

It should be noted that both time limits and minimum amounts apply in regard to applications. 
•    In order to make the EVR reclaim, the applicant must make an electronic refund application to the tax authorities in their own country i.e.an Irish business should submit the application to the Irish  Revenue.  The refund application must be lodged by 30 September in the calendar year following the refund period i.e. VAT incurred in May/June 2015 must be claimed by 30 September 2016. The Irish Revenue then forward the reclaim to the appropriate foreign EU tax authorities.

•    The refund period cannot exceed 1 calendar year and cannot be less than 3 calendar months unless the application relates to the last quarter of a calendar year.

•    Minimum  thresholds apply in respect of making claims. The reclaim cannot be for an amount less than €400 if the claim is for a period of less than 1 calendar year and not less than €50 if the claim is for a period that represents a full calendar year or the last quarter of a calendar year.

•    Applicants are allowed to submit a maximum of 5 applications for each Member State in any calendar year. However, some Member States may only accept 4 applications.

Moore Stephens, as a leading tax and advisory firm, would welcome the opportunity to assist your business in making applications for EVR and thereby improving your profitability and cash flow. 

For further details on making VAT Re-claims or on any other VAT matters it is recommended that you contact Padraig O’Donoghue, Eoghan Bracken or your representative in Moore Stephens.