How to reclaim foreign VAT suffered in 2016
Irish businesses operating in other EU Member States can incur significant amounts of foreign VAT on their costs e.g. on travel and entertainment costs, purchase of goods for lease or resale locally, attendances at conferences and tradeshows etc.
Notwithstanding that Irish businesses may not be established or VAT registered in other EU Member States they may have an entitlement to recover the foreign VAT incurred via a special EU wide VAT refund procedure.
The VAT rules across the various EU Member States may differ from Ireland and there can be greater scope for recovery of VAT on certain foreign costs than under equivalent Irish rules e.g. VAT on travel and entertainment costs.
The deadline for filing EU VAT reclaims for the calendar year 2016 is 30 September 2017. This is a fixed deadline and if missed the opportunity to recover any foreign VAT incurred will be lost.
VAT incurred by an Irish company in another EU Member State may be recovered by submitting an application electronically, together with a copy of the largest invoices, to the Irish Revenue Commissioners via the Revenue Online Service (“ROS”).
The Irish Revenue will forward the claim electronically to the relevant EU Tax Authorities for processing.
Consider whether you have suffered foreign VAT on any transactions carried out in the EU during 2016.
KPMG has the expertise and resources to assist, identify and compute VAT incurred in other EU Member States which your business may be entitled to reclaim. If you are interested in making a reclaim for 2016 before the 30 September 2017 deadline, please contact Philip Nolan, Glenn Reynolds or your usual KPMG Tax adviser to discuss what opportunities may exist for your business.