HOW CAN YOU GET A VAT REFUND ?
Regardless of the place of their headquarters or establishment, businesses are generally entitled to get VAT refund on their expenses subject to standard VAT deduction rules laid down in the EU Member State where expenses are incurred.The VAT can be reclaimed under certain conditions according to two different procedures:
The delay to obtain the refund by the French tax authorities is around 4 months for the first claim and around 2 months for the following claims.
- if your company needs to be VAT registered in France, the VAT refund claims are made together with the VAT returns. VAT returns and VAT refund claims can be submitted every month.
- if your company does not need to be VAT registered in France, VAT refund claims are submitted as follows depending on whether the claimant is based within or outside the EU :
– if the claimant is established in EU, via an electronic procedure of VAT refund used by all the Member States (Directive 2008/9/EC). The VAT refund claims may be submitted by the company or by a tax agent via the national portal of the tax authorities of the Member State where the company is established, at the latest the 30th September of the calendar year following the invoice date or the VAT payment, depending on the case.
– if the claimant is established outside EU, via a tax representative established in France, who submits the claim for VAT refund on its behalf in the framework of the 13rd VAT Directive 86/560/CEE, at the latest the 30th June of the calendar year following the invoice date or the VAT payment, depending on the case.
French tax authorities do not require any reciprocity condition so that a foreign company can submit a VAT refund claim in France regardless of the third country where it is established.
ON WHAT TYPE OF EXPENSES IS VAT REFUNDABLE?
- Participation to events, conferences, exhibitions located in France and ancillary expenses such as booth rental, restaurants for business purposes, etc.
- Domestic purchases of goods in France where there is no possibility to obtain a local VAT number because there are not subsequent supplies or because the reverse charge scheme applies on the subsequent supplies,
- Expenditures incurred for the purpose of a liaison office: premises rental, electricity, phone, office supplies…
WHAT ARE THE DOCUMENTS REQUIRED FOR SUBMISSION OF A VAT REFUND CLAIM ?
(if your company does not need to be VAT registered in France)
FOR COMPANIES ESTABLISHED IN THE UE :
Scanned invoices (when the net amount is higher than 1 000 € and 250 € for fuel expenses)
FOR COMPANIES ESTABLISHED OUTSIDE THE UE :
- recent incorporation certificate or extract of trade register (form 6166 for US companies),
- scanned invoices (when the net amount is higher than 1 000 € and 250 € for fuel expenses),
- power of attorney appointing the tax representative.
how many vat refund claims CAN YOU SUBMIT ?
(if your company does not need to be VAT registered in France)
Five claims per year can be submitted: one claim per quarter and an additional yearly claim.
WHAT IS THE TIME FRAME FOR RECEIVING THE VAT REFUND BY THE FRENCH TAX AUTHORITIES ?
(if your company does not need to be VAT registered in France)
The maximum delay is six months. Where VAT has been incorrectly charged, companies run the risk of tax authorities rejecting their claims.
WHAT CAN WE DO FOR YOU ?
La Représentation Fiscale’s VAT refund services cover the entire process:
REVIEW THE PURCHASE INVOICES,
COMMUNICATE THE ERRORS identified in the purchase invoices that could question VAT refund and advise on how to handle possible issues;
THE PREPARATION and submission of VAT refund claim ;
FOLLOW- UP ACTIONS with the authorities (e.g. answers to their requests for information) up to their decision,
OUR LIABILTY as tax representative.
Do you want to recover the VAT on your purchases in France or in the European Union?
Do not hesitate to contact us for any assistance.