There are three ways for your business to get a VAT refund in the European Union: On your VAT return, the EU VAT Refund Scheme, and 13th Directive reclaims. Which you can use will depend on where your business is based and whether your business is registered for VAT.
The first thing to clarify is what VAT is, and the two types of VAT: Input and Output. Value Added Tax (VAT) is a consumption tax used across Europe and in the EU. It’s applied at every stage of a product’s production and distribution. When you buy something in Europe, you'll likely be paying VAT on that purchase.
Output VAT is the VAT you charge your customers and pass to a tax authority. For example, you’re registered for VAT in Italy and sell an Italian customer EUR 200 worth of cosmetics. You add 22% VAT to the price. Your customer pays you EUR 244, and you pass EUR 44 to the Italian tax authority.
Input VAT is VAT that your business pays when it purchases something or imports goods into the EU. For example, you need more boxes to ship your cosmetics in, so you purchase some from an Italian supplier. You spend EUR 610, EUR 110 of which is VAT.
You can only get a VAT refund for Input VAT (unless you’ve incorrectly overpaid Output VAT). There are three ways to do it: through your VAT return, the EU VAT Refund Scheme, or a 13th Directive Reclaim. Which option you can use depends on your location and whether you’re registered for VAT in the country where you want a refund.
Usually, being registered for VAT is a requirement for getting a refund. That makes refunds via VAT returns the most common method. However, if you’re not registered in the country where you’re requesting a refund, you can use an EU directive instead. EU-based businesses can use the EU VAT Refund Scheme, and non-EU businesses can use the 13th Directive.
Companies not based in or registered for VAT in the EU are still entitled to VAT refunds. This process is a 13th Directive VAT Refund. To get a 13th Directive refund in a country, you must:
Some countries require you to appoint a fiscal representative to apply for a VAT refund. They must be established in the country where you’re applying for the refund. They're legally responsible for ensuring you meet the requirements. If you're in the UK, you'll need a VAT66 certificate that proves your UK trading status. It can take up to 5 weeks to get it from HMRC.
There is a deadline, a limit on claim submissions and a minimum amount you can claim. Each EU country sets its deadlines, limits and minimums. Confirming these details is complicated, so we’re outlining how it usually works. If you want a 13th Directive Refund, one of the experts on our team will confirm things with you.
The deadline for submitting a claim depends on the country. It's usually the 30th of June or the 30th of September of the year following your purchase. For example, you order materials in July 2024. You have until the 30th of June or September 2025 to claim the VAT on that transaction.
Typically, the minimum amount you can claim changes depending on the period you’re claiming for. For less than a year, the minimum is usually EUR 400. For a year, the minimum drops, typically to EUR 50.
Companies based in the EU can get VAT refunds from other EU countries, without being VAT registered there. This process is an 8th Directive VAT Refund. You can use the EU VAT Refund Scheme if your business:
The deadline to apply for an 8th Directive refund is the 30th of September in the year after you paid the Input VAT (except in Cyprus, where it’s the 30th of June). For example, you made a purchase in June 2024, so you have until September 30th, 2025, to apply for a refund.
You can apply for refunds up to five times a year. You can apply for one annual claim, two bi-annual or four quarterly, or a mix. Every EU country has a minimum amount you can claim for in a set period. Typically, it’s EUR 400 for a period of less than a year, and EUR 50 for annual claims.
Your VAT return will show how much Input VAT you've spent and how much Output VAT you've collected. If your Input VAT is higher than your Output VAT, you might be able to get a refund on the difference. When your Output VAT is higher than your Input VAT, you deduct your Input from the Output and pay the Tax Authority the difference.
Whilst on paper, you can get excess Input VAT refunded to you, in practice, it can be quite a different story. Most Tax Authorities prefer to carry the excess forward to your next tax period, rather than refund the money. It's common for there to be administrative barriers to getting a refund. For example, Polish VAT refunds require you to have a Polish bank account. If you’re not based in Poland, you’ll need to travel to Poland to instruct a lawyer to prepare the bank application and instruct a notary to verify your documents. You’ll then have to formally open the account and sign the documents in person. In the past, this process has cost clients of ours about EUR 3000. It's not the only hurdle, either - requesting a refund is likely to result in you being audited.
Poland is only one example, and although it can be tricky, it’s definitely possible to get a VAT refund in Europe. Knowing what the refund situation in a country is like will help you make strategic buying decisions. For example, if you’re planning a large purchase, you might want to consider a supplier in a country where you’re already VAT registered.
VAT Refunds can be complicated, so we've put all the answers to the most common questions here.
UK businesses can reclaim VAT they’ve paid in the EU in one of two ways:
If you’re registered for VAT in the country where you’ve been charged VAT, you can reclaim the VAT on that country’s VAT return. Otherwise, you can use the 13th Directive, which allows non-EU businesses to get a refund without being registered for VAT.
You’ll need invoices showing the VAT you paid, and then typically:
The exact requirements vary by country.
Yes, and the deadline varies depending on how you’re making a claim and in which country. Time limits are calculated based on when you paid the input VAT (when you purchased something).
For 13th Directive claims, it’s usually the 30th of June or the 30th of September, the year after the purchase. For EU VAT Refund Scheme claims, it’s the 30th of September in the year after the purchase (except in Cyprus, where it’s the 30th of June). As an example, you have until June 2026 to claim back the VAT you paid in April 2025.
When it comes to refunds via your VAT return, these typically have to be done in the same period as you paid the VAT. For example, a purchase made in April has to be claimed in April’s return.
Under both the EU VAT Refund Scheme and the 13th Directive, there are minimum amounts you get refunded. How much varies by country and based on the period you’re claiming for. For example, if you use the EU VAT Refund Scheme, you can make a claim for purchases that occurred over a period of 3 months. Typically, in that case, the minimum amount you’ll be able to claim is EUR 400. If you were to make a claim for purchases over a whole year, the minimum drops to EUR 50.
Most EU States won’t refund you the VAT on certain kinds of purchases. The categories vary by country, but some of the common ones are:
Holding stock in an EU country doesn’t necessarily change your eligibility, but rather how you get your refund. Usually, holding stock in an EU country means you have to register for VAT in that country. If that’s the case, then you’ll have to reclaim any VAT you paid in that country through your VAT return.
Businesses based in the EU can use the EU VAT Refund Scheme (sometimes called an 8th Directive refund). This scheme lets you claim a refund for VAT you paid in another EU country in the country where you’re based.
If you’re not based in the EU, you have to apply directly to the tax authority in the country where you paid the VAT.
If you make a mistake while you’re trying to reclaim VAT, your request will be rejected. Depending on the kind of mistake (say, for example, your invoices don’t match what you’re claiming for), you might even get audited.
Usually, the only way you can get import VAT back is via a VAT return. You’ll need to be registered for VAT in the country where you imported the goods to do it.
You can only get a refund through a VAT return if you’re registered for VAT. Reclaiming VAT via your VAT return only works if your purchase was in the country where you’re registered. The EU Refund Scheme lets businesses based in the EU get VAT refunds in other EU countries. You have to be registered for VAT in your country of establishment, but not in the country where you want the refund. The 13th Directive refund scheme is for non-EU companies not registered for VAT.
Businesses based in the UK can still get a VAT refund in an EU country. If you’re registered for VAT in the country where you paid the VAT, you can claim it back through your VAT return. If you’re not, you’ll have to use the 13th Directive to get a refund.
