Input Tax Refund Procedure for Companies

1. General Information

The input tax refund procedure allows companies to reclaim VAT paid abroad. It applies to both German companies reclaiming foreign VAT and foreign companies that have had German VAT refunded. The procedure and requirements vary depending on where the company is located and whether the VAT was paid within or outside the EU. Applications must be submitted to the Federal Central Tax Office (BZSt).

2. Regulation since 01.01.2010

Since 01.01.2010, refund applications within the EU must be submitted exclusively electronically. Domestic entrepreneurs use the BZSt's online portal for applications regarding invoices from other EU countries. EU foreign entrepreneurs also submit electronic applications. The procedure has been simplified, e.g., the submission of original invoices is waived except for exceptions. Applications for invoices from the previous year must be submitted by September 30 at the latest.

3. Entrepreneurs Based in Germany

3.1 Entrepreneur Certificate

German entrepreneurs who need confirmation of their entrepreneurial status for input tax refunds in third countries receive this certificate from the tax office. This certificate is only issued to eligible entrepreneurs.

3.2 Input Tax Refund Procedure for VAT Charged in the EU

German entrepreneurs who have been charged VAT in other EU countries can submit an input tax refund application to the BZSt. A separate application is required for each EU country. The application must contain certain information and be submitted electronically.

4. Entrepreneurs Based Abroad

4.1 Location Abroad

Foreign entrepreneurs who do not have an establishment in Germany can have domestic input tax refunded. Residency is defined according to certain criteria.

4.2 Further Requirements

Listing of requirements to have input tax refunded, including the type of services provided.

4.3 Exclusion of the Input Tax Refund Procedure

Situations in which the input tax refund procedure cannot be applied and the input tax must be reclaimed through the normal taxation procedure.

4.4 Input Tax Refund Period

Explanation of how the refund period is chosen.

4.5 Entrepreneur is Based in the EU

Instructions for entrepreneurs based in the EU on applying for input tax refunds in Germany.

4.6 Entrepreneur is Based in a Third Country Outside the EU

Procedure for foreign entrepreneurs outside the EU to reclaim German input tax, including required documents and deadlines.

This guide provides a comprehensive overview of the input tax refund procedure for companies and helps ensure that companies receive the amounts to which they are entitled.