Re: [118attendees] VAT refunds, nope

[Carsten Rossenhoevel <[e-mail]>]

Vittorio,

Your statement is only partially correct - it applies generally to the taxation of goods and some services in the EU.  However, B2B services related to events are taxed at the place where those events physically take place (VAT Directive Article 53). Please take a look at https://taxation-customs.ec.europa.eu/where-tax_en for more details.

As an EU company not based in the Czech republic, we would be entitled to request refund of the Czech VAT from the Czech tax offices under the regulations of the VAT Directive, Articles 170-171.  However, this typically does not make sense for small amounts due to certain minimum thresholds and high bureaucratic efforts.  See https://taxation-customs.ec.europa.eu/vat-refunds_en for more details.  Note that this article only applies to European businesses requesting a refund, not to foreign (worldwide) businesses where different rules apply.  I am not an expert on those rules but believe that VAT for entertainment/events services cannot be reclaimed by entities residing outside the EU.

Best regards, Carsten 

--
Carsten Rossenhövel
Managing Director, EANTC AG (European Advanced Networking Test Center)
Salzufer 14, 10587 Berlin, Germany
office +49.30.3180595-21, fax [phone], mobile [phone]
[e-mail], https://www.eantc.de

Place of Business/Sitz der Gesellschaft: Berlin, Germany
Chairman/Vorsitzender des Aufsichtsrats: Herbert Almus
Managing Directors/Vorstand: Carsten Rossenhövel, Gabriele Schrenk
Registered: HRB 73694, Amtsgericht Charlottenburg, Berlin, Germany
EU VAT No: DE812824025

-----Original Message-----
From: 118attendees <[e-mail]> On Behalf Of Vittorio Bertola
Sent: Wednesday, 11 October 2023 09:32
To: John Levine <[e-mail]>; [e-mail]
Subject: Re: [118attendees] VAT refunds, nope

> Il 10/10/2023 05:32 JST John Levine <[e-mail]> ha scritto:
> 
> The US does not charge VAT so there's nothing to reciprocate.
> 
> A little googlage suggests Czechia has reciprocal agreements with the 
> rest of the EU, Iceland, Macedonia, Norway and Switzerland. If you are 
> in any of those countries, I expect you can get local advice on how to 
> claim it as part of your business' expenses.

If you are a company or another VAT-registered entity in the EU, and ask another entity in a different EU country (for example a hotel) for an invoice, then the other entity is expected to subtract their local VAT and only invoice you (and receive payment) for the VAT-free amount. You then have to sort out VAT payment on that invoice in your own EU country according to your home rules. However, if you are paying as a person (i.e. not having a VAT position) then you get to pay the local VAT as usual and nothing can be recovered.

Non-EU visitors can get VAT refunds, but only for goods that they export back to their own country, so this does not apply to hotel rooms or anything consumed on the place.

--
Vittorio Bertola | Head of Policy & Innovation, Open-Xchange [e-mail] Office @ Via Treviso 12, 10144 Torino, Italy

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