VAT refunds from other EU states

11. September 2020
  • Grant Thornton Czech Republic
  • Adam Pinďák

If you paid local VAT in the price of the goods or services purchased in 2019 in of the EU member countries, and if you use these goods and services for your business, then you may apply for the VAT refund.

Please be informed that the deadline for submission of an application for the refund of VAT paid for the goods or services purchased in 2019 in other EU member countries will expire on September 30, 2020. The most common VAT refund claims concern invoices for hotels, admissions to congresses, exhibitions and trade fairs, fuel, etc..

Any Czech VAT payer without a registered office or permanent establishment for VAT purposes in the country of refund may claim the VAT back. Member states shall refund any VAT for the goods and services paid in other member countries and used by Czech tax- payer for business activ-ities. The conditions for claiming VAT refunds are similar to those applied when claiming VAT in Czech tax return. The application needs to be submitted in the Czech Republic through an electronic portal administered by the General Financial Directorate. The application must bear an electronic signature, however you may authorize tax advisor to submit the application on your behalf.

Of course, the system also works reciprocally; i.e. VAT payers from other member countries that purchase goods or services in the Czech Republic may claim for VAT refund in the Czech Republic as well.

Entrepreneurs often forget about the tax refunds; e.g. even those VAT payers that are registered as identified persons in the Czech Republic may claim for VAT  refund in the Czech Republic, if their registered seat   is in a different member country.

We will be pleased to assist you with submission of an application for the refund of VAT paid in other EU member states. If you require any further information, please do not hesitate to contact your tax advisor

Author: Grant Thornton Czech Republic, Adam Pinďák