Quickly free up liquidity with a complete refund approach

A business that purchases, travels, or procures services internationally accumulates VAT in countries where no return is filed. That money should not remain unnecessarily locked away. With a VAT Refund, you reclaim paid VAT from the competent authority, provided the costs are business-related, correctly invoiced, and claimed within the deadlines. The effect is immediate: lower costs, better margins, and an administration demonstrably under control. By organizing the process tightly, you prevent money from being tied up in incomplete files or being rejected due to formal errors.

When a refund is promising

You can often reclaim more than you think. Foreign VAT on trade fairs and events, hotel stays and transport, leasing and maintenance, marketing costs, consultancy services, and certain goods deliveries is refundable in many systems. Import VAT can also depending on your logistics setup be settled via a VAT Refund or cleared through the customs chain. At the same time, there are limits: some countries restrict refunds on representation, vehicle-related expenses, or mixed costs. By checking in advance which categories do and do not qualify, you build a realistic claim that won’t need to be corrected later.

File preparation that withstands review

Start at the source. Ensure suppliers are correctly classified, VAT codes in your accounting are accurate, and purchase invoices are centrally archived. Link each expense to cost category, project, and country. Keep additional evidence where relevant: contracts, trade fair participation confirmations, transport documents, hotel confirmations, payment proofs. By labelling each document with country, period, and category, you can quickly generate the substantiation an assessor expects. A solid file shortens the processing time of your VAT Refund and increases the likelihood of full approval.

Five-step approach (compact and reproducible)

1. Scoping: determine countries, periods, and cost types; check exclusions and thresholds.
2. Data cleaning: reconcile general ledger, purchase subledger, and bank; correct VAT codes and duplicates.
3. File building: collect invoices and evidence, number annexes, and record methodology.
4. Submission: use the correct portal or form, within the deadline, with a summary per category.
5. Follow-up: monitor status, respond to questions, book allocations, and secure learnings for the next round.

With this structure, you turn a one-off action into a scalable process that reaches the same quality level every period.

Cross-border logistics and import

In supply chains, VAT shifts from purchase to import. If you import goods and then sell locally, the right to deduct arises locally via the regular return. Without that registration, a refund via the refund scheme is required with customs documents as crucial proof. Think of correctly linking MRNs, import calculation notes, and payment proofs. If you opt for customs arrangements that optimize cash flow (such as deferred payment or reverse charge), the need for a VAT Refund decreases, but the importance of a complete audit trail increases.

Technology: From stacks of invoices to data-driven claims

Manual work is error-prone. OCR and e-invoicing extract key fields from invoices, while validation rules check supplier VAT, rate, and mandatory fields. Dashboards show where costs accumulate without valid VAT or where invoices deviate from policy. Automatic reconciliations align the total of the claim with your general ledger and bank. This data quality pays off in higher approval rates and faster turnaround times for your VAT Refund.

Deadlines, thresholds, and communication with the authority

Each jurisdiction has its own rules. Some require a minimum claim; others allow interim submissions. Confirm receipt, note reference numbers, and monitor statutory response times. If the authority requests clarification, respond point by point, referring to numbered annexes. Stay factual, avoid emotion, and indicate where necessary what internal improvements have been implemented to prevent recurrence. This professional attitude makes it easier to have your VAT Refund reviewed substantively.

Common mistakes and how to avoid them

Rejections often result from missing or incomplete invoice details, incorrect rate application, missed deadlines, or submitting costs that are explicitly excluded. It also happens that companies submit claims when there is actually a fixed establishment, which changes the route from refund scheme to regular return. The remedy is straightforward but effective: first-line checks, a clear cost catalogue per country, and periodic data reviews. This keeps your VAT Refund afloat when the burden of proof increases.

Collaboration and responsibilities

Record who owns the data, who ensures supplier compliance with invoice requirements, and who performs the final review. Ensure purchase terms include minimum invoice requirements and that suppliers know them. Train teams that book travel or organize events in collecting evidence (reservation confirmations, badges, or participation proofs). When everyone’s role is clear, information flows quickly, and the success rate of your VAT Refund increases.

From refund to structural savings

A successful refund is great; structurally reducing VAT loss is better. Use insights from files to optimize purchasing flows, contract texts, and travel policy. Consider where registration or reverse charge is preferable, how you select suppliers based on invoice quality, and how you automatically integrate evidence into your systems. This way, a VAT Refund becomes not only a retrospective action but a source for lasting improvement in cost control and compliance.

Conclusion: Claim what is yours, carefully and on time

VAT you are entitled to reclaim should not be stuck in paperwork. With clear criteria, complete documentation, strict deadlines, and data-driven checks, you bring speed and certainty to the process. By working in this way, a VAT Refund becomes a predictable cash flow engine instead of an incidental windfall. VATWISE supports you with methodology, tools, and tax substantiation so that every euro you can reclaim actually returns to your business.