Globalization is expanding the reach of businesses to new markets; multinational companies are now able to source suppliers from virtually anywhere in the world; and e-commerce enables them to ship their products and deliver their services to tech savvy customers in the farthest regions of the world. An important consequence of this phenomenon is that many multinational companies are incurring Value Added Taxes (VAT) and Goods and Services Taxes (GST) in an ever increasing number of countries. The question of whether they can obtain a refund of the VAT or GST they incur on a timely basis and with a minimum of compliance costs, is a critical financial, tax and business efficiency issue.
In this survey, KPMG has examined and evaluated the ability to obtain refunds of VAT and GST across 65 countries. We found that:
KPMG’s VAT/GST refunds survey should be an invaluable toolkit for Chief Financial Officers, Tax Directors, and Global and Regional Indirect Tax Directors to understand the practical experience of obtaining refunds of VAT/GST in most of the major economies around the world.
1 There are 34 OECD member countries. The only OECD member countries not surveyed were Chile, Israel and the United States (which does not have a VAT or GST).