Part of our business is related to supporting companies that apply for VAT refunds in Germany. We work with companies in various sectors, including transport, for example. We have been dealing with VAT refunds for purchases in Germany for many years. With so much experience, we are able to meet any challenge. Our aim is to deal with the matter quickly and to satisfy the customer. There are two VAT rates in Germany. The first is 19%. This is the basic rate that applies to, among other things, the cost of fuel purchases. There is also a reduced rate of 7%, which covers costs incurred for accommodation, for example.
Who can apply for a VAT refund in Germany?
The details of the VAT refund rules are described in Council Directive 2008/9/EC of 12 February 2008. Pursuant to this directive, companies which are active VAT taxpayers in Poland and have correctly issued invoices may apply for a VAT refund from Germany. It is worth noting, however, that companies that are permanently active in Germany (this does not apply to companies involved in transport and ancillary services related to this industry) or have a registered office or branch in Germany cannot apply for VAT recovery.
Amount of VAT refund from Germany
The lowest amount needed to claim a tax refund for purchases in Germany is €400. However, it is worth noting that this applies to claims for less than a calendar year. When it comes to claims for a whole year or for the period from November to December, the minimum amount is €50.
VAT recovery from Germany – for what?
In Germany, input VAT can be claimed on the purchase of goods or services acquired by companies in the country. Accordingly, VAT can be claimed on fuel, oil, tolls, hotels, car parks or the hire of means of transport.
VAT refund in Germany – documents
In addition to the application for a VAT refund from Germany, other documents must be provided. Among these are receipts. However, it is important to note that these are only accepted if they do not exceed a gross value of €250 and, in addition, must bear the stamp of the company purchasing the goods or services. If the value of the transaction is higher, an invoice must be presented. Another option is the stamp of the filling station with an employee’s endorsement together with the date and signature.
Submission of a VAT refund application – Germany
Many entrepreneurs wonder how to recover VAT paid in Germany. The application, together with other documents, must be submitted to the tax office with jurisdiction over the business. The employees of the office verify it and then forward it to the country of refund. There, the documents are checked again and a decision is made to accept or reject the application.
The request for the recovery of VAT from Germany is submitted quarterly, annually or for the period November – December. It is also possible to submit documents for the previous year. In this case, the documents must be submitted by 30 September.