Europe’s cross-border VAT recovery process has been significantly – and beneficially – reformed over the last few years.
But there are still areas of great complexity, often concerning whether VAT should have been charged by suppliers. Despite reform, companies in many sectors still have to negotiate confusing and risky terrain when applying for cross-border VAT refunds – this can involve understanding the VAT implications of their activities in a particular country and what action needs to be taken in order to ensure that they do not face a VAT cost.
One consequence is that misdescribed claims get rejected. Another, is that many companies, not understanding the rules, make unnecessary claims. These are also rejected. In fact, many companies end up paying commission to third parties for obtaining credit notes – on claims that could be eliminated through better procedures.
Millions of euros can be involved. The resultant cost and cash flow issues are serious. European tax authorities, under pressure to retain revenue in an austerity environment, are reluctant to help: the slightest error is often punished by a rejection of the claim.
Accordance is a specialist cross-border European VAT practice. All our work is consultant led. We believe that the key to successful cross-border VAT recovery is accurate VAT analysis. We are committed to providing the most commercially efficient solution possible for our clients’ VAT recovery needs.
The procedure for recovering VAT incurred in the EU depends on whether you are established within the EU or outside the EU.