Reclaiming VAT paid abroad: the application and deadlines

If, as a Slovak VAT payer, you buy goods or services in other Member States and pay the local tax there, you can, under certain conditions, apply for it to be refunded. Reclaiming VAT paid abroad is important above all for business trips, trade fairs or purchases abroad, where the tax cannot be deducted in the regular return. In this article we explain when you are entitled to a refund, how to submit the application and which deadlines apply.

When you are entitled

The entitlement to a refund of foreign tax arises if you have paid local tax in another EU state on supplies related to your business, and in that state you are not required to register for tax and you make no taxable supplies there. Typically these are the costs of accommodation, fuel, attending trade fairs or minor operating purchases during business trips. So this is not tax that you could claim in your regular Slovak return, but tax paid as part of the purchase price in another state, which the tax administration there refunds to you on the basis of a separate application.

• accommodation and meals during business trips
• fuel and transport costs
• admission fees and the costs of trade fairs and conferences

How to submit the application

The refund application is submitted electronically through the portal of the Slovak Financial Administration (Finančná správa), which forwards it to the Member State of refund. So you do not submit it directly abroad, nor in a foreign language at a foreign authority, which simplifies the whole process. The application is accompanied by details of the documents and, where applicable, copies of them or electronic attachments, depending on the requirements of the particular Member State of refund.

Deadlines for submission

The application must be submitted within the set period after the end of the calendar year to which the purchases relate. Check the specific deadline and the minimum amounts for a refund in the current rules, as they may change and also differ depending on whether you are claiming for the whole year or only part of it. Missing the deadline generally means losing the entitlement to the refund.

How the application is processed

The Member State of refund assesses the application and may request additional information or the original documents for verification. Once the application is approved, the tax is refunded to the bank account you specified. Processing takes a certain amount of time, depending on the state concerned and on whether it requests additional information, so do not count on an immediate refund and take this into account in your financial plan.

Common reasons for rejection

An application may be rejected for incomplete details, missing documents or costs that the state concerned excludes from refunds. Some countries, for example, restrict the refund of tax on fuel, entertainment or hospitality. You should therefore check the rules of the destination state in advance, so that you do not apply for a refund of tax to which you are not entitled and do not needlessly prolong the proceedings.

Practical recommendations

Keep all your foreign documents and record them on an ongoing basis throughout the year, not only when you submit the application. Filling in the application accurately and meeting the deadlines are the key to success. If reclaiming VAT paid abroad is new to you, prepare your first application with the help of an accountant who knows the differing requirements of the individual states. The process is worthwhile even for smaller amounts, because this is money that would otherwise remain unused in the price of your purchases abroad.

Related articles: eKasa and the obligation to record sales: who it applies to, VAT rates in Slovakia and how to apply them correctly, Cancelling VAT registration: the procedure.

Frequently asked questions

Do I submit the refund application directly abroad?

No. You submit the application electronically through the portal of the Slovak Financial Administration, which forwards it to the relevant Member State of refund. The whole process is therefore handled by the domestic Financial Administration, and you do not have to communicate directly with a foreign authority.

By when must I submit the application?

The application is submitted within the set period after the end of the calendar year to which the purchases relate. Check the exact deadline and the minimum amounts for a refund against the current rules, as they may change over time.