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What is VAT? |
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VAT (Value Added Tax)
is an indirect tax on consumer expenses. VAT is charged and collected at each stage of the production process and
not only on the final sale. VAT is normally borne by the consumer in the price paid for goods and services. It is also
charged on business transactions.
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Can I get a refund? |
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Many countries have
a VAT system implemented. The opportunity to recover VAT on services (hotel accommodation, car rentals, petrol,
or meals) is limited to Europe, Canada, and Korea. Most businesses qualify to obtain refunds, which must be filed
in the company name. Individuals travelling for pleasure are cannot recover expenses on services but can recover
the VAT paid on goods (souvenirs, clothing) which are exported from the country of origin.
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What expenses are eligible for refund? |
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Expenses which are
eligible vary from country to country but may include hotel accommodations, car rentals, meals, petrol, conference
and trade show costs, professional fees, training courses and inter-company expenditures. Canada allows a refund
of expenses on hotel accommodation only.
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Which countries allow refunds? |
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The following countries
will allow for non-resident companies to file for refunds: Austria, Belgium, Canada, Denmark, Finland, France, Germany,
Greece, Hungary, Iceland, Ireland, Italy, Korea, Liechtenstein, Luxembourg, the Netherlands, Norway, Portugal, Spain,
Sweden, Switzerland, and the UK.
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What is required to obtain a refund? |
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the applicant must
submit an original invoice from the foreign service provider. Credit card statements, carbon copies, or duplicates
will not be accepted
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How long does refund process take? |
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Typically, it takes about
six to eighteen months to receive a refund. The amount of time varies from country to country.
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Can I get my original invoices returned? |
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The European
authorities return original invoices on all paid claims. When filing for a refund in Canada, you must
request for the original invoices once the claim is paid.
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Is there a deadline? |
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Most governments
impose one of two filing deadlines, June 30th or December 31st , depending on the location. Canada requires Invoices to be
submitted for refund within one year of the invoice's issued date.
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Are there any fees? |
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VAT.com retains
a percentage of the refund dependent upon the level of service provided.
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