Source Paul Cramer
Unofficial translation in English
Did you know that … you don’t have to wait until September to reclaim your foreign VAT for 2019? That is already possible. This will avoid the peak crowds in the autumn and your money will be received faster. To get you started, below are 10 tips for a successful foreign VAT refund.
1. Request your access code and password for the NL tax office portal in time, specifically for reclaiming foreign VAT
A refund request is made electronically on the portal of the Dutch tax authorities. Login details and passwords are provided by post and the time involved increases as the September 30 deadline approaches. Count on one to two weeks.
2. Provide receipts & invoices as proof of your expenses
Proof is required to reimburse your employees for the expenses they have incurred. An expense can be demonstrated without you receiving the correct receipts (think of a pin or other receipt, an order confirmation or a screenshot of supplier portals). However, for a refund request you must have the (simplified) invoices. Therefore, agree with your employees that they will at least provide the receipt.
3. Update and improve the expense reporting process for your employees
A request for a refund by Dutch companies contains little to no smaller receipts from the claim systems. Invoices from established creditors are often processed in a refund request and invoices and receipts for invoices are not or only partially included. Consider using declaration software to facilitate, digitize and improve the process, including with a view to reclaiming foreign VAT. Instruct your employees to have invoices placed in the name of the company, such as invoices from hotels.
4. Avoid applying the travel agency scheme to your overnight stays
Applying the travel agency scheme to invoices from intermediaries means that you cannot, or only under certain circumstances, reclaim the foreign VAT.
Assess whether the intermediary can act as your authorized representative and have hotels issue the invoice in the name of your company, rather than your intermediary.
5. Review foreign receipts and invoices as early as possible and repair them where necessary
Assess as soon as possible whether invoices are “compliant”. The sooner you do that, the better and faster you can repair or improve incorrect invoices and / or processes. This allows you to significantly increase the volume of VAT to be reclaimed.
6. Process digital receipts and invoices immediately upon entry
When using declaration software, all data is digitally available and you can connect the refund process to it. Opt for a digital solution; that saves a lot of time.
7. Know which costs are not or only partially eligible for a refund
Do not reclaim foreign VAT on costs that do not qualify for this. Know the exceptions and improve the quality of your requests. This prevents annoying questions from the foreign tax authorities. This often causes a significant delay in the processing of your request and unnecessary extra time. Avoid a negative opinion from the tax authorities. Keep in mind that the assessment by the foreign tax authorities can take place using automation and / or AI.
8. Record additional information in advance to cover costs incurred
If expenditures of a consumer nature have been made, for which a right to a refund of VAT with the correct explanation is possible, make sure that this documentation is available in advance. If possible, please provide this information with the request.
9. Draw up an overview of commercial vehicles and drivers where fuel has been refueled or maintenance has been carried out abroad
More and more tax authorities of EU Member States are requesting additional information from fuel receipts. Provide this information actively with your refund request.
10. Record why and for whom consumer operating costs were incurred
In some Member States, a distinction is made between consumer operating expenditure for the benefit of own workers and third parties (mostly with regard to food and drink). Make sure you can make this distinction and try to have that information available in advance.
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