Procedural Errors in EU VAT Refunds: Risk of Losing VAT Credit for Non-French Entities

• The Paris Administrative Court of Appeal issued a judgment on June 27, 2025, regarding VAT refund applications for EU taxable persons not established in France.
• The case involved Abo Wind AG, a German company, and highlighted the risks of procedural errors, particularly concerning deadlines.
• Foreign operators must carefully submit VAT refund applications, ensuring correct transaction qualifications and tax liability identification.
• Errors can lead to the loss of the right to reimbursement.
• Abo Wind AG incorrectly invoiced VAT under the reverse charge mechanism and sought a refund for over 4 million euros for Q4 2018.
• The company used the domestic procedure for VAT credit reimbursement, which was deemed incorrect by the tax authorities.
• The correct procedure for non-established foreign taxable persons involves applying through the tax authority of the Member State of establishment by September 30 of the following year.
• The tax authorities rejected the refund request, and the rejection was upheld by the Paris Administrative Court.
• Abo Wind AG appealed the decision, arguing for the use of the domestic procedure.

Source: cyplom.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---