Input Tax Refund Procedure

1. General Information

The input tax refund procedure offers companies the opportunity to reclaim the VAT paid abroad. This refund can be relevant for both German companies seeking to reclaim foreign VAT and for companies based abroad seeking a refund of German VAT. The process and requirements of the procedure vary depending on the location of the company, whether in Germany, within the EU, or outside the EU. Applications must be submitted to the Federal Central Tax Office (BZSt).

2. Regulation since 01.01.2010

Since January 1, 2010, refund applications within the EU must be submitted exclusively electronically. German entrepreneurs submit their applications via the BZSt online portal, while entrepreneurs based in other EU countries submit their applications through the competent authority of their country. The procedure offers simplifications such as the elimination of country-specific application forms and the possibility of submitting electronic copies of invoices instead of original invoices.

3. Entrepreneurs Based in Germany

3.1 Entrepreneur Certificate

Entrepreneurs based in Germany can obtain a certificate of their entrepreneurial status from the tax office if they wish to apply for an input tax refund in a third country.

3.2 Input Tax Refund Procedure for VAT Charged Abroad in the EU

A German-based entrepreneur who has been charged VAT in another EU country can apply for an input tax refund through the BZSt. A separate application is required for each EU country, which requires certain information and documentation.

4. Entrepreneurs Based Abroad

4.1 Location Abroad

To have the input tax refunded in Germany, an entrepreneur must be based abroad. Specific requirements and exclusions apply.

4.2 Additional Requirements

The foreign entrepreneur must not have provided taxable supplies in Germany during the refund period to participate in the input tax refund procedure.

4.3 Exclusion of the Input Tax Refund Procedure

In certain cases, the input tax refund procedure does not apply, and the input tax can only be obtained through the normal taxation procedure.

4.4 to 4.6 Further Details

Different regulations and procedures apply to entrepreneurs based in other EU countries or third countries for applying and conducting the input tax refund.

Finally, it should be noted that the information in the text reflects the status as of March 2024 and cannot replace individual advice in specific cases. If you have questions about the input tax refund, the experts at the tax advisory firm are available to assist you.