Value added VAT paid in another EU country - refund process

Service-Tax

Polish taxpayers wishing to recover VAT on value added paid in another EU country must submit an application to the Polish tax office. The whole process of tax refund is accompanied by many circumstances that you should know about before submitting this application.

Necessary documents to be submitted

In a situation where a Polish taxpayer will apply for a VAT refund on value added paid in another EU country, then he will have to submit the VAT-REF form (currently in version 4). It should be remembered that the following documents / data should be attached to the form in question:

  1. account number to which the refund is to be made (IBAN with BIC number),

  2. account name and details of the account owner,

  3. all invoices relating to the purchase of goods or services that have an impact on the tax base,

  4. bank confirmations and other proofs of payment for the purchased goods or service (including foreign VAT).

Where and in what form should an application for a VAT refund be submitted?

The basic issue when submitting the VAT-REF form is that it can be submitted by both the taxpayer and his representative. If the form is to be submitted by an attorney, the attorney must submit a power of attorney to the tax office to which the application for VAT refund will be submitted. Attention!
In the case of a refund of VAT paid in another EU country (VAT-REFUND procedure), the power of attorney UPL-1 is not valid. The taxpayer is obliged to submit a power of attorney in writing to represent the taxpayer in the VAT-REFUND process before submitting the VAT-REF form by the attorney.

The above power of attorney must obligatorily include the following elements:

  1. place and date of issue,

  2. address and tax identification number of the applicant,

  3. name and address of the relevant tax office,

  4. expression - power of attorney,

  5. name and surname of the appointed representative,

  6. address and tax identification number of the representative,

  7. scope of the power of attorney granted.

The submission of a power of attorney requires the payment of a stamp duty in the amount of PLN 17.

Another issue when submitting the VAT-REF form is that it can only be submitted in electronic form, using the e-Deklaracje system. After sending the form electronically, the taxpayer will be able to download the UPO document confirming the submission of the document to the competent tax office.

Attachments to the form in the form of scans of original documents should be packed into the ZIP archive and also attached electronically to the VAT-REF form. More about the details of filling in the publication on: "How to fill in the VAT-REF form?".

The VAT-REF form in question should be sent to the tax office competent for:

  1. a natural person running a business due to the address of residence,

  2. partnerships and capital companies due to the company's registered office address.

Time limits accompanying the VAT refund process

The application for a VAT refund for the purchase of goods or services in another EU Member State may be submitted no later than 30 September of the year following the year of incurring the above-mentioned expenditure. It should be noted that it may be submitted for a minimum period of 3 months and a maximum period of 12 months.

After receiving the VAT-REF application with attachments, the Polish tax office checks the formal requirements of the submitted documents. If everything is OK, it submits the application within 15 days from the date of receipt of the application to the foreign tax office in the country where the goods or services were purchased, which is appropriate for the possibility of applying for a VAT refund for non-domestic, domestic taxpayers.

The foreign tax office, after analyzing the VAT-REF form with attachments, will send to the Polish taxpayer within approximately 4 to 8 months from the date of receipt of the VAT refund application, the decision:

  1. on negative consideration of the application for VAT refund - in this situation, the decision will present the reasons for the rejection of the application along with an instruction on the possible submission of an appeal against this decision to the competent authorities of the Member State where the VAT refund is made, or

  2. on positive consideration of the application for VAT refund - in this case, the Polish taxpayer has to wait for the refund of the VAT amount, which the tax office of the state of VAT refund will transfer to the account of the Polish taxpayer within about 10 days from the date of issuing a positive decision, or

  3. on a request by the tax office performing the VAT refund of the Member State of purchase of goods or services to supplement the application by submitting the necessary documents or information to the extent that these data are necessary due to any restrictions on the right to deduct under Directive 2006/112 / EC, the rules applied in the Member State of refund or for the application of the corresponding derogation obtained by the Member State of refund under Art. 395 or 396 of the above-mentioned directive - it should be emphasized that the deadline for submitting the necessary documents or information is 1 month from the date of receipt of the request. After receiving additional documents or information, the foreign tax office issues a decision to reject or accept the application for a VAT refund within 2 months from the date of receipt of the requested, above-mentioned data.

It is worth noting that the foreign tax office may also make a partial VAT refund, if it deems that the submitted documentation shows that the taxpayer has acquired the right to refund only a part of the tax.

Value added VAT paid in another EU country - additional explanation

In addition to the above rules for submitting an application for a refund of value added tax paid in a different EU country than the country of conducting business activity for the purchase of goods or services, Council Directive 2008/9 / EC of 12 February 2008 specifying detailed rules for the refund of value added tax indicates additional circumstances accompanying the tax refund process, including:

  1. where the taxable amount indicated on the invoice or import document is EUR 1 000 or more or its equivalent in national currency, the Member State of refund, without prejudice to requests for additional information under Art. 20, may require the applicant to submit electronically a copy of the invoice or import document together with the request for reimbursement. If the invoice concerns fuel, the threshold is EUR 250 or the equivalent in the national currency,

  2. The Member State of refund may specify the language or languages ​​to be used by the applicant for the submission of the information contained in the refund application or any additional information,

  3. if the application for a refund relates to a refund period shorter than a calendar year, but not shorter than three months, the requested amount of VAT refund may not be less than EUR 400 or its equivalent in national currency,

  4. if the refund application relates to a refund period of a calendar year or the remainder of the calendar year, the amount of VAT may not be less than EUR 50 or its equivalent in national currency.