VAT Refund

What is a 13th Directive and how does it differ from 8th Directive ?


Foreign companies not established in a member state of the European Union can apply for refund of VAT paid in a member state through the so-called “13th VAT Directive” (86/560/EEC).

Each member state sets its own conditions, for example in France :

  • The refund is conditioned to the appointment of a tax representative, duly accredited by the tax authorities (which is not the case in other Member States such as Belgium or Luxembourg);
  • The company must not carry out operations requiring a VAT number (applicable in all member states);
  • A reciprocity agreement is not required (this is not the case for other Member States such as Spain, the Czech Republic or Poland for example);
  • The claimant must provide proof that he is liable for VAT/or similar tax in the non-EU country in which he is established, and that the request for reimbursement relates to his economic activity (applicable in all Member States);
  • Deposit deadline not exceeded (generally June 30 of the year following the year of the expenses concerned, but some EU member states have a deadline of September 30).
  • VAT can be reclaimed on goods claimed for refund (some expenses are not deductible or only partially deductible).
  • Important : VAT must be invoiced regularly by the supplier/service provider !

Filing claims for VAT refunds under the 13th Directive : a complex regulatory landscape


Filing claims for VAT refunds under the 13th Directive is subject to conditions that vary considerably from country to country.
Each national tax authority applies its own requirements in terms of form, deadlines, supporting documents and eligibility criteria. These rules are not only heterogeneous, but also strictly controlled by local authorities.

In this fragmented regulatory context within the European Union, it is essential (and sometimes mandatory) to call on professionals who are familiar with the specific features of each jurisdiction.

Even a minor error in the preparation of a file can not only result in the rejection of a claim, but also trigger an in-depth tax audit, with all the implications that this entails.
Surrounding yourself with experts can therefore optimize your chances of success, while at the same time making your dealings with foreign tax authorities more secure.

MAVAT's plus


You'll have a single point of contact who will assist you with the analysis, file preparation, application, follow-up and response with the tax authorities - and all this with an expert specializing in indirect taxation !

Contact Us !

What about 8th Directive refund claims ?


The procedure of VAT refund so called “8th Directive” enables companies established in the EU which has pay VAT in one EU member state to claim refund of this VAT.

  • electronically, via the tax portal of the country in which the company is established (for example, the French portal for a French company);
  • This claim must be submitted within strict deadlines (by September 30 of the year following the payment of the VAT), and must be accompanied by original or scanned invoices
  • There is no reciprocity agreement
  • There is no obligation to appoint an accredited tax representative. Nevertheless, it is highly advisable to provide support to avoid refusals or possible tax inspections by the relevant authorities.

01

An honest approach : nothing is sold to you unnecessarily

Before any action is taken, we analyze your situation with you, the expenses involved and how they relate to your business. If the claim is unlikely to succeed, we will tell you so, with complete transparency. Unlike some firms that offer services that are doomed to failure - or even generate tax risks - MAVAT doesn't sell you anything that isn't really justified.

02

Preparing the file : we take care of everything

Once you've appointed us as your fiscal representative, we will help you prepare your administrative file. This includes formalizing our appointment as your fiscal representative (if necessary), as well as collecting the required documents: registration certificate, company articles of association, proof of VAT liability, and all relevant invoices. Each document is rigorously checked.

03

Expert follow-up, especially in the event of an audit

We analyze each item of supporting documentation with the utmost precision, to build a solid, well-argued response to inevitable tax audit. Each expense is classified, evaluated and put into context to maximize the chances of reimbursement.