{"id":988548,"date":"2025-10-13T09:44:33","date_gmt":"2025-10-13T09:44:33","guid":{"rendered":"https:\/\/www.taxdesk.com\/uncategorized\/have-you-left-money-on-the-table-vat-refunds-explained\/"},"modified":"2026-02-25T13:24:36","modified_gmt":"2026-02-25T13:24:36","slug":"have-you-left-money-on-the-table-vat-refunds-explained","status":"publish","type":"post","link":"https:\/\/www.taxdesk.com\/it\/have-you-left-money-on-the-table-vat-refunds-explained\/","title":{"rendered":"Have you left money on the table?\u00a0 VAT refunds explained"},"content":{"rendered":"
For companies either operating in Europe or doing business with European companies VAT can appear complicated and confusing.\u00a0 This is particularly true around VAT refunds.\u00a0 Many companies are entitled to reclaim VAT but miss out simply because the rules appear complex or unfamiliar.\u00a0<\/span>\u00a0<\/span><\/p>\n

Are you owed money?<\/span><\/b>\u00a0<\/span><\/p>\n

Understanding how VAT refunds operate, and identifying if you are eligible, improves cash flow and reduces unnecessary expenses.<\/span>\u00a0<\/span><\/p>\n

There are two main types of VAT refunds:<\/span>\u00a0<\/span><\/p>\n

    \n
  1. Refunds for businesses already VAT-registered in a country<\/span>\u00a0<\/span><\/li>\n<\/ol>\n
      \n
    1. Refunds for non-VAT registered businesses, also known as 8th\/13th Directive claims in the EU<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

      Knowing which category applies to your business can make the difference between leaving money on the table or boosting your bottom line.<\/span>\u00a0<\/span><\/p>\n

        \n
      1. VAT refunds for VAT-registered businesses<\/span><\/b><\/li>\n<\/ol>\n

        If your business is VAT-registered in a country, you can deduct input VAT (ie the VAT you pay on business-related purchases, such as office supplies, rent, or professional services) from your output VAT, which is the VAT you collect from customers.<\/span>\u00a0<\/span><\/p>\n

        How it works:<\/span><\/i> When you file a VAT return, input VAT is offset against output VAT. If you\u2019ve paid more than collected, the tax authority refunds the difference. In some countries, the refunds will be processed automatically after submitting the returns, while in others, you will need to select the refund option in your VAT return, or the credit will be carried forward to the next one. In both cases, the tax authorities will request additional information to support the input VAT claim (eg purchase invoices) or launch a tax audit, before a refund is paid.<\/span>\u00a0<\/span><\/p>\n

        Why this matters:<\/span><\/i> Cash flow is critical. Businesses that frequently have high expenses or significant exports can greatly benefit from timely VAT refunds. Delays or missed filings can lead to lost refunds, so keeping up with deadlines and proper documentation is essential.<\/span>\u00a0<\/span><\/p>\n

          \n
        1. VAT refunds for non-VAT registered businesses (8th\/13th Directive claims)<\/span><\/b><\/li>\n<\/ol>\n

          Even if your business isn\u2019t registered for VAT in the country where costs are incurred, you may still be eligible for a VAT refund under EU VAT refund schemes:<\/span>\u00a0<\/span><\/p>\n