Cross border refunds of VAT in the EU

The general position is that, under the terms of the 8th or 13th EU VAT Directives, a VAT registered person who is engaged in business outside the State, and who is not engaged in business in the State, may claim repayment of Irish VAT on most business purchases in the State. Currently, the main conditions governing repayment are:

  • Where the claimant is carrying on business outside of the European Union s/he must provide written proof of economic activity issued by the competent authority of his/her own State;
  • The goods/services giving rise to the claim must be goods/services in respect of which tax would be deductible if the claimant’s business was carried on in Ireland, and must not include goods for supply within the State or motor vehicles for hiring out for utilisation within the State;
  • The business for which the goods/services were purchased must be a business which would be taxable if carried on in Ireland;
  • Up until 31/12/2009, an application for repayment to VAT registered traders established outside Ireland but within the EU (under the 8th EU VAT Directive), was made by way of Form VAT 60EC. This application was replaced by a new electronic VAT refund procedure which came into effect on 1st January 2010 (see below);
  • Application for repayment by VAT registered traders established outside the EU (under the 13th EU VAT Directive) can be made by a pdfForm VAT 60OEC - Application for Refund of Value Added Tax (VAT) by a taxable person not established in Ireland (PDF, 71KB) (13th Directive).

The system for EU registered Traders changed with effect from 01/01/2010

Significant new EU legislation came into effect on 1st January 2010. A new electronic VAT refund procedure was introduced across the EU for all claims submitted by traders established within the EU. Revenue and Tax Authorities of other EU Member States will not accept paper based applications after 1st January 2010. The revised procedure is as follows:

If your business is established in Ireland:

  • You are required to submit an electronic application for a refund of VAT incurred in another EU State. This electronic VAT refund (or EVR) application will have to be made directly to the Irish Revenue Authorities through ROS, the Revenue On-line Service, under the new tax head “EVR” (available from 01/01/2010). Register for ROS
  • Revenue will then forward your claim, electronically, to the relevant Member State for processing
  • Certificates of Taxable Status are no longer required
  • Irish VAT registered traders (and/or their agents) who are already registered with ROS, will automatically be able to submit an application for EVR from 1st January 2010.

If your business is established in another EU Member State:

  • From 01/01/2010, Revenue will not accept paper based applications for a refund of VAT.
  • You will be required to submit an electronic application for a VAT refund to the Tax Authority of that Member State rather than directly to Revenue as at present.

General FAQs

Why are these new procedures being implemented?

EU Directive 2008/9/EC, which came into force on 01/01/2010, necessitates the new procedures.

What is the purpose of the new Directive?

The new Directive simplified the recovery procedure by allowing traders to directly submit an electronic VAT Refund application to their own tax authorities for VAT incurred in another EU Member State. It abolished the requirement for existing application forms and Certificates of Taxable Status to be used with effect from 01/01/2010.

Do I need to be registered for VAT in order to reclaim a refund?

Yes. You must be registered for VAT for the full refund period being claimed.

What is the time limit for submitting an application?

From 1st January 2010, applications must be submitted by 30th September in the calendar year directly following the calendar year in which the expenditure was incurred. The 30th September deadline has been extended until 31st March 2011 for the year 2009 only.

What period can be claimed for?

The refund period is based on a calendar year (e.g. 01/01/2010 to 31/12/2010). An application cannot relate to more than one calendar year or less than three consecutive calendar months (except where the period represents the remainder of a calendar year, e.g. November & December). The period of each claim should not overlap.

You may submit up to 5 claims including a calendar year claim. This calendar year claim can cover the full 12-month period and can be used to include expenditure omitted from previous claims.

Member State requirements vary and you should contact the relevant Member State for clarification.

Example 1 -
Claims submitted for the following periods:
01/01-31/03 (Jan to Mar)
01/04-31/06 (April-June)
01/07-30/09 (July to Sept)
01/10-31/12 (Nov to Dec)
01/01-31/12 (Jan to Dec)
In this instance the maximum number of claims allowable is 5.

Example 2 -
Claims submitted for the following periods:
01/02-31/12 (Feb to Dec)
01/01 -31/12 (Jan to Dec)
In this instance the maximum number of claims allowable is 2.

How many applications can I make?

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.

What are the time limits for processing applications?

The time limit for the State of Refund to make a decision as to whether to approve or refuse a refund application is 4 months. However, if it is necessary for the State of Refund to request additional information in respect of the claim, the maximum time limit is extended to 8 months.

Do I still need to send a Certificate of Taxable Status?

No. From 1st January 2010, Certificates of Taxable Status will no longer be required.

What information is required for the online application?

Your application will incorporate an online declaration and the following information will also be required:

  • Your name and full address
  • An address for contact by electronic means
  • A description of your business activity for which the goods and services are acquired
  • The refund period covered by the application
  • Bank account details including IBAN and BIC codes
  • Details of each invoice or importation document, to include:
    • Name and full address of the supplier
    • The VAT identification number or tax reference number of the supplier
    • The prefix of the Member State of Refund (i.e. Ireland = IE)
    • 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 expressed in the currency of the Member State of Refund
    • Nature of the goods and services acquired

Will supporting documentation be required?

Yes, in certain circumstances additional documentation may be requested by the Member State of Refund. Some Member States may require invoices or importation documents to be submitted as an attachment with the application.

What is a simplified invoice?

Simplified arrangements for issuing invoices may be allowed when commercial, technical or administrative practices in a particular business sector make it difficult to comply with general invoicing requirements, or if the amount of the invoice is minor.

Under a simplified arrangement the relevant documents must include the following details:

  • the date of issue
  • the identification of the supplier, including the supplier’s VAT number
  • the identification of the types of goods or services supplied
  • the tax due or the information needed to calculate the tax due

Applications for approval of simplified invoicing arrangements should be made to the tax authority in your own Member State.

What is the minimum amount that I can claim?

The total amount of VAT claimed must not be less than:

  • €400 if the claim is for a period between 3 months and 1 calendar year
  • €50 if the claim is for a period of a calendar year (12 months) or the remainder of a calendar year i.e. November & December

What number do I use if I have more than one VAT number?

Where your business has more than one VAT registration number, you should use the VAT registration number that is appropriate to the expenditure.

What number do I use if there is group registration?

If you are part of group registration, the application must be submitted under the group remitter number. If there is no group remitter number, each member of the group may submit individual applications.

What expenditure can I claim for?

Expenditure will be classified by code or sub code. A full list of these codes will be available when completing the application.

Update

Please see below the most recent update on the operation of the new electronic VAT refund procedure.
EVR update 2011

Further information

Additional FAQ’s for Irish VAT registered traders making a VAT refund application to another EU Member State

Additional FAQ’s for VAT registered traders established in another EU Member State making a VAT refund application to Revenue

Additional information on the new EU VAT refunds procedure will be available on this website on an ongoing basis. Enquiries should be addressed to: Unregvat@revenue.ie.

Last Updated: June 2011


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