When an Irish VAT registered trader correctly incurs VAT in another EU Member State, they cannot reclaim this VAT in their Irish VAT return. However, this does not mean that the non-Irish VAT incurred is a cost to the business. In principle, EU VAT law provides a mechanism whereby a business may reclaim VAT incurred/paid in another EU Member State. The Electronic VAT Refund (EVR) service allows VAT-registered traders, who have paid VAT in another EU Member State, to submit a claim for a refund.
Some common examples of expenses on which non-resident traders may incur local VAT costs include:
- Employee travel and expenses
- Import VAT
- Local purchases of goods
- Clinical trials
Please note if you have incurred non Irish VAT in an EU Member State within which you are registered for/ liable to register for VAT, you should look to reclaim this VAT through the local registration.