BDO: Foreign VAT can only be reclaimed by the end of the month

30th September is the deadline

All domestic enterprises that have received an invoice containing local VAT for a product or service in the countries of the European Union, or in Switzerland, Liechtenstein, Norway, Turkey or Serbia, can claim back the tax amount if the content of the invoice is related to the company’s economic activity. Typically, such a case can be, for example, a machine or production equipment purchased abroad, or even an invoice from a foreign legal representative.

It is important that the request for a refund can only be submitted by a company that has neither a permanent seat nor a place of business in the state of the invoice issuer, nor does it maintain a branch office there through which it obtained income in the given Member State. In addition, the companies in the above countries also have the opportunity to claim back if they paid invoices with Hungarian VAT added to them in Hungary.

BDO