VAT Reclaim: Navigating Foreign VAT Deadlines
As a global leader in tax services and software, we understand that recovering VAT from foreign countries can be a challenging yet valuable process for companies operating internationally. In 2024 alone, Ryan successfully recovered more than $6 billion in taxes for clients, a significant portion of which came from VAT refunds across borders.
The opportunity for non-resident companies to reclaim VAT is often constrained by deadlines, which vary by country. We are often asked, “What are foreign VAT deadlines?” To simplify this, Richard Haye, Director of Product and Strategic Accounts at Ryan, has outlined key information and a downloadable diagram to guide you through this process.
Claiming VAT From Countries Within the European Union
The deadlines for claiming VAT within the EU depend primarily on whether your business is established inside or outside the EU:
- For EU-established businesses: The deadline is nine months from the end of the calendar year. For invoices dated between 1 January and 31 December, the claim deadline is 30 September of the following year.
- For business outside the EU: The deadline is six months from the end of the calendar year. For invoices dated between 1 January and 31 December, the claim deadline is 30 June of the following year.
Additionally, some EU countries extend the deadline for both EU and non-EU businesses to nine months. These countries include Belgium, Denmark, Estonia, Greece, Hungary, Italy, Latvia, Poland, Portugal, Romania, and Spain. For invoices dated between 1 January and 31 December, the claim deadline is the 30 September of the following year.
The exception to this is that the Netherlands allows input VAT claims to be made up to five years from the end of the calendar year, regardless of whether your business is established in the EU or not.
Claiming VAT From Countries Outside the European Union
Deadlines for claiming VAT outside the EU are country-specific. Below is a summary:
- Bahrain: The deadline is three months from the end of the calendar year. For invoices dated between 1 January and 31 December, the claim deadline is 31 March of the following year.
- Canary Islands: The deadline is nine months from the end of the calendar year. For invoices dated between 1 January and 31 December, the claim deadline is 30 September of the following year.
- Iceland: Claims can be made up to 31 December for the preceding six complete calendar years.
- Saudi Arabia: The deadline is six months from the end of the calendar year. For invoices dated between 1 January and 31 December, the claim deadline is 30 June of the following year.
- South Korea: The deadline is three months from the invoice date.
- Switzerland: The deadline is six months from the end of the calendar year. For invoices dated between 1 January and 31 December, the claim deadline is 30 June of the following year.
- Taiwan: The deadline is 12 months from the invoice date.
- United Arab Emirates: The deadline is eight months from the end of the calendar year. For invoices dated between 1 January and 31 December, the claim deadline is 31 August of the following year.
- United Kingdom: The deadline is six months from the end of the split calendar year. For invoices dated between 1 July and 30 June, the claim deadline is 31 December of the following year.
Key Considerations
Several countries require reciprocal arrangements to allow refunds to non-established businesses. This means that VAT refunds are only available if your country also provides refunds in a similar manner to businesses in their countries. This rule applies to the following countries: Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Italy, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Spain, and Switzerland.
Claim periods and opportunities vary widely by country, and there is no set rule for all or groups of countries. Some countries allow multiple claims per year within defined limits, while others allow only one claim for the annual claim. Duplication of claim periods is not allowed and can result in rejection.
Why Choose Ryan for VAT Reclaim?
Ryan ensures that your business maximises cash flow by submitting the optimum number of claims and adhering to all country-specific deadlines and requirements. Our team of specialists handles the intricacies of VAT recovery on your behalf, so you can focus on growing your business without the risk of missing key deadlines.