VAT refunds can be claimed for companies which do not have a seat in the European Union.
If the company does not have a business activity which results in VAT registration and is based outside of EU, it can ask for a VAT refund from the Czech Republic. There is a special paper form that must be used for this purpose.
What must be attached to the claim:
- Original invoices from which VAT refunds are being requested
- A statement on the tax status of the claimant
- A statement about the economic activity in the country where the refund is made
Minimum amounts and periods:
- 7000 CZK for a period shorter than one year but more than 3 months
- 1000 CZK for a one year period claim or the same minimum limit applies if the claim period is shorter than 3 months, but only if it includes months from the end of the year.
What is not refundable:
- Goods and services used for personal consumption
- Travel, accommodation and food costs
- Phone charges
- Taxi charges
- Fuel costs
The Czech Tax Administration has 6 months to process the claim. If they require additional information, answers must be given solely in Czech.
VAT refunds if the claimant is based in the EU.
A VAT refund is possible if the company is not VAT registered in the country of refund and has a seat in a member state of European Union. For this purpose all EU member states developed an electronic system. Each country offers their VAT payers use of the VAT refund portal with the possibility of sending demands for reclaimed VAT to other EU states via the portal.
Rules about who can act on behalf of the client, what is needed for claims, how to enter the portal, who can enter the portal for the client, and other details may differ from country to country. But a VAT refund claim has a strictly given format.
What the refund claim must contain:
- The VAT number of the claimant
- The name and seat of the claimant
- The name and seat of the agent
- The Email of the claimant or the agent
- The nature of the claimant’s business
- The period to which the VAT refund relates
- A statement about the economic activity of the claimant in the country where refunds will be made
- Bank account details
- Data about the invoices
The claim should also contain a scan of the invoices. A scan is required if the amount of the invoice is higher than 250 Euros in case of fuels, or 1000 Euros in the case of other commodities or services. Some tax administrations do not request a scan of documents.
Some tax administrations request an agent’s power of attorney to be sent with the claim or by post.
A VAT refund claim is filled in on the portal of the claimant, which means that it is being filled in in their home language. In the case of any additional requests for information, in some cases it can be answered in English or it must be answered using the local language of the country where refunds are processed as some countries do not accept communication in English.
- 400 Euros per quarter
- 50 Euros per year
The tax authorities of the country of refund have 4 months to process the claim. In the case of additional requests for information this period can be prolonged.
Decisions about VAT refunds are given to the claimant via the portal. In some cases the decision is sent by email or even in a paper form by post.
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