Nowadays, a great deal of companies conduct the sale of goods and services on an international scale. Beyond doubt, such activities bring numerous business and operational challenges. However, what is becoming increasingly significant are matters of taxation.

Each company has its own difficulties and challenges – their list being endless. In our experience, a growing number of companies ask “what if a business owner, who is a VAT taxpayer and conducts business by making taxable purchases in other EU countries, is not obligated to register for VAT in those countries?” You have the right to apply for a VAT refund, which can constitute a significant portion of operational costs and contribute towards enhancing the profitability of business.

The application procedure

In the initial stages of the procedure, it is important to become acquainted with current legal regulations. Although VAT is a harmonised tax within the European Union, the regulations of individual Member States may differ for various reasons, for example, in the deduction rights for specific goods or services. Understanding these regulations is necessary for correctly claiming and refunding VAT.

When applying for a VAT refund, a company should verify whether it is subject to registration requirements in the respective country. Failure to register for VAT and settle the due VAT may result in a negative decision when seeking a VAT refund and may even evoke penalties for overdue payments.

Upon acquiring all the necessary documents, it is possible to apply for the refund of foreign VAT. Without suitable experience, this procedure can be complex and may “cost” the company a significant amount of time.

Choose a reliable business partner

Many companies ultimately decide on working with companies experienced in the successful recovery of foreign VAT. KR Group experts analyse the client’s situation, prepare the application, submit it to the relevant tax authorities and mediate in potential investigation procedures.

KR Group supports entities from non-EU countries in filing applications for the refund of VAT incurred in Poland. In the case of an entity from a non-Polish EU country which has applied through their tax authority for the refund of VAT incurred in Poland, our experts mediate in providing explanations and other activities carried out during proceedings conducted by authorities.

VAT refund – why is it worth it?

The foreign VAT refund is a significant element of financial management for companies operating on the international market. Beyond the obvious financial savings, this refund contributes to improving the profitability of the enterprise. A proper understanding of procedures and cooperation with professionals significantly shortens the time and increases the success of this process, promoting further development of the company.