FAQ

I have downloaded my entries on the VAT refund form from the form server as an XML file for security. When uploading them, I receive an error message stating that the form can no longer be loaded.

N.B.

Who is entitled to reclaim VAT paid in Germany?

Only entrepreneurs are entitled to receive refunds of VAT paid in Germany because only entrepreneurs are entitled to deduct input tax. The condition is that the goods or services have been procured from another business for the applicant's business.

The tax authorities do not refund VAT paid in Germany to private individuals. However, private individuals are entitled to claim (from the vendor) a refund of the VAT paid if they export goods procured in Germany from Germany to a non-EU state (third country) and the export is authenticated by the German customs authorities. The invoice must then be returned to the vendor (issuer of the invoice), who can then refund the VAT included in the invoice.

The issuer of the invoice is entitled to a refund of the VAT refunded from the tax office responsible for it, by entering the appropriate VAT adjustment (tax-exempt export delivery) in the VAT return.

Special rules apply to foreign diplomatic missions and their members and to international organisations.

back to choice

Where can a foreign entrepreneur receive a refund of VAT paid in Germany?

A foreign entrepreneur registered with a German tax office for the general taxation procedure in accordance with § 18, paragraphs 1 to 4a of the [German] VAT Act (UStG) can claim the amounts of deductible input tax in accordance with § 15 UStG from said tax office (§ 16, paragraph 2, sentence 1 UStG).

Under certain circumstances, a foreign entrepreneur can only receive a refund of the VAT paid in Germany within the scope of the special input tax refund procedure (§ 18, paragraph 9 UStG). The Federal Central Tax Office is responsible for this in accordance with § 5, paragraph 1 no. 8 of the Tax Administration Act. (FVG),

back to choice

Who must claim a refund of VAT paid in Germany within the scope of the input tax refund procedure?

The input tax refund procedure will apply if the foreign entrepreneur

has not made any sales in Germany or

has only made tax-exempt sales within the meaning of §4, no. 3 UStG (cross-border shipment of goods and peripheral services) or
has only made sales for which the recipient of the service must pay tax (§13b UStG) e.g. for sales under a contract for goods, services, work, labour and material) or
has only made sales which have been subject to individual taxation on transport (occasional coach travel from non-EU countries) or
has only made intra-Community acquisitions and subsequent deliveries (intra-Community triangular transactions) within the meaning of §25b, paragraph 2 UStG, or
only performs miscellaneous services by electronic means in the EU to non-entrepreneurs resident in the EU, uses the option of registration for tax in one Member State only and has paid the taxes incurred for said services.

An entrepreneur domiciled in a non-EU state (third country) is only entitled to a VAT refund if no VAT or similar tax is raised in the country of domicile or said state also refunds VAT raised to entrepreneurs domiciled in Germany within the meaning of reciprocity in accordance with §18, paragraph 6, sentence 6 UStG.

Even if reciprocity applies, a refund of input tax is not possible for entrepreneurs from non-EU member states if said input tax applies to inclusive travel costs and the purchase of fuel (refilling of tanks) for road and air travel.

If there is no reciprocity, the input tax refund procedure must nevertheless be implemented if an entrepreneur not domiciled in the EU performs taxable sales under a contract for work, labour and materials, or other services in Germany for which the recipient of a service must pay VAT (§13b, paragraph 2 UStG).

This also applies if an entrepreneur not domiciled in the EU has made sales which have been subject to individual taxation on transport (§16, paragraph 5 and §18, paragraph 5 UStG). However, a refund of input tax is precluded in such cases if the input tax is incurred on inclusive travel costs and the purchase of fuel for road and air travel.

Under German tax law, there is no statutory requirement for the involvement of an accountant (tax representative) in the input tax refund procedure.

back to choice

How can a foreign entrepreneur receive a refund of the VAT paid in Germany within the scope of the input tax refund procedure?

The foreign entrepreneur must make a written application for a VAT refund, using the official form. The application must be signed by the foreign entrepreneur in his or her own hand.

The original of all invoices for which an application is being made for a VAT refund must be attached (§18, paragraph 9 UStG). All invoices for more than €100 (including VAT) must be itemised in the schedule to the application for a VAT refund.

The following simplifications are admissible for itemisation in the schedule to the application for a VAT refund in accordance with section 243, paragraph 2 UStR, if the amounts invoiced are under €150 (including VAT) and the net amount and VAT are shown as a single amount:

The applicant can give the invoices separate consecutive numbers depending on the tax rate and cost type, e.g. costs for fuel, accommodation and meals, and summarise and account for them using these numbers and the gross invoice amounts in separate lists (e.g. adding machine printouts). The VAT included must be calculated from the respective total and transferred as an entry to the schedule to the application for a VAT refund.

The entrepreneur must also submit certification from the country in which he is domiciled stating that he is registered under a tax number as an entrepreneur in his country of domicile (VAT registration certificate, §61, paragraph 3, [German] VAT Implementation Order (UStDV).

The VAT refund must be at least €200 for entrepreneurs domiciled within the EU and at least €500 for entrepreneurs domiciled in non-EU states, in accordance with §61, paragraph 2 UStDV. For refund periods which include the month of December, this minimum amount is reduced to €25 (EU) and €250 (non-EU).

Other details can be found in the instructions on the application (USt 1 T) for a refund of VAT.

Do original invoices have to be available before the submission deadline?

At the VAT III/07 meeting, the supreme federal and state tax authorities decided (agenda item 4) to apply the Federal Tax Court (BFH) judgement of 18 January 20907 -VR 23/05 to the question of submission of individual invoices in the input tax credit process in general. The above-mentioned BFH judgement of 18 January 2007 has already been uploaded to the BMF website and will soon be published in Part II of the Federal Tax Gazette. It should therefore be applied in all comparable cases.
The supreme state tax authorities have also resolved a transitional arrangement for application of the above-mentioned BFH judgement of 18 January 2007 until 30 June 2007, under which original invoices not received by the submission deadline will be considered if they were received by the tax authority responsible for the input tax credit procedure by 30 June 2007.

back to choice

When must / can an application for a refund of VAT be made?

The application for a VAT refund can be made after expiry of the selected refund period at the earliest.

The application for a VAT refund must be made to the Federal Central Tax Office by 30 June of the following calendar year at the latest (§18, paragraph 9, sentence 3 UStG). The date of receipt by the Federal Central Tax Office will be decisive. The applicant must therefore make allowance for the standard period between mailing and delivery.

The submission deadline constitutes a time limit which cannot be extended either in advance or retrospectively. Advance transmission of the application by fax does not constitute observance of the deadline.

A refund of the VAT charged on invoices for which the application for a VAT refund was received late by the Federal Central Tax Office is usually no longer possible. Late applications are therefore rejected without further consideration.

Example:

On 30 December 2006, the applicant received an invoice dated 10 December 2006 for hotel accommodation in Berlin. He must make a claim for said invoice in an application of which the refund period includes December 2006, and which the Federal Central Tax Office must receive by 30 June 2007 at the latest.
If the applicant does not receive this invoice until 2 January 2007, he must make a claim for said invoice in an application of which the refund period includes the month of January 2007 and which the Federal Central Tax Office must receive by 30 June 2008 at the latest.

back to choice

For which period must an application for a refund of VAT be made?

The applicant can determine the refund period him or herself. The refund period must not exceed the calendar year and must cover at least 3 months. Should the refund period constitute the remaining period of the calendar year (i.e. including December), the refund period may also be less than 3 months, as an exception (§ 60, UStDV).

Should the entrepreneur wish to apply for a refund of VAT for invoices from different calendar years, he must submit (at least) one separate application for each calendar year. The admissible refund period selected by the entrepreneur must always be observed for further applications for the corresponding calendar year. Overlapping refund period are not admissible.

Example:

An application for the July-September refund period is not possible if an application has already been made for the February to July refund period. In this case, the entrepreneur must make an application which includes at least the three months from August to October as an admissible refund period. July invoices for which a refund has not yet been made would have to be submitted with an amendment application for the February to July refund period.
If invoices are issued after deliveries have been made or services performed, the relevant refund period will depend upon the date of receipt of the invoice.

Example 1:

On 2 January 2007, the applicant receives an invoice dated 31 December 2006 for goods received on 30 November 2006. The admissible refund period must thus include at least the months January to March 2007 (3 months), as the applicant did not receive the original invoice until 2007.
If invoices are issued before the deliveries have been made or services performed, the relevant refund period will depend upon the date of receipt of the invoice and the date of payment.

Example 2:

On 15 December 2006, the applicant receives an invoice dated 10 December 2006 (invoice date) from an exhibition company for a deposit for an exhibition taking place in June 2007. The invoice is paid on 10 January 2007.

The admissible refund period must include at least the months January to March 2007 (3 months), as the invoice was not paid until 2007. Deduction of input tax requires both receipt of invoice and payment.

Example 3:

On 5 January 2007, the applicant receives an invoice dated 28 December 2006 (invoice date) from an exhibition company for a deposit for an exhibition taking place in June 2007. As he had already been given advance telephone notice of the invoice, he pays it on 30 December 2006.
The admissible refund period must thus include at least the months January to March 2007 (3 months), as the applicant did not receive the original invoice until 2007.

back to choice

When must a formal appeal be lodged if an amendment is necessary?

If the Federal Central Tax Office has approved the application for a VAT refund in full, the applicant will receive a corresponding refund advice.

If the Federal Central Tax Office has approved the application for a VAT refund in full or only in part, the applicant will receive a corresponding refund advice.

An application for amendment in accordance with § 172, paragraph 1, no. 2 of the [German] Tax Code (AO) may only be made within the appeal period. An appeal can be lodged against refusal of an application for amendment.

The appeal requirement thus only exists if the applicant and the Federal Central Tax Office represent different opinions which cannot be settled by an application for amendment within the scope of normal processing of the application.

Example 1:

Refund of an invoice from Hotel Bonna for €1,160 including 16% VAT was refused by the Federal Central Tax Office because it does not contain the requisite itemisation of the VAT. When the invoice has been corrected by the issuer, a new application for refund of the VAT can be made for this invoice with a punctual application for amendment (subsequent application). An appeal is not necessary in this case.

Example 2:

The Federal Central Tax Office has rejected an application for a refund of VAT on an invoice because only a copy of the invoice was submitted, not the requisite original, since the original was destroyed in a fire in the bookkeeping department. Should the applicant not share the opinion of the Federal Central Tax Office that this loss should be claimed from the responsible insurer, his only course of action is to obtain a formal decision on appeal, which he may have reviewed by the responsible authority, Cologne Tax Court.

The primary purpose of a formal appeal against a refund advice is therefore to make the Federal Central Tax Office reconsider its decision and, in the absence of any remedy, produce a formal decision on appeal.
The applicant is entitled to contest such an appeal ruling before the responsible court (Cologne Tax Court), thus having the decision by the Federal Central Tax Office reviewed by the court.

back to choice

How are returned original invoices to be treated?

The applicant is under an obligation to keep original invoices and vouchers against which VAT has been refunded for ten years.

back to choice

I have downloaded my entries on the VAT refund form from the form server as an XML file for security. When uploading them, I receive an error message stating that the form can no longer be loaded.

This problem may occur in individual cases due to a necessary technical modification to the form server. Please load your XML file into a text editor so that you can continue to use the data. Then make the following line change in the XML file:

old:
<form>catalog: (...) </form>

new:
<form>catalog://Unternehmen/ust/verus_open_online</form>

Save the modified file. You will then be able to upload the modified file to the form server.

back to choice

N.B.

back to choice

back to the top