GlossaryEN1 min readUpdated: Jun 18, 2026

VAT input tax refund procedure

A company has paid VAT on goods or services in another EU Member State and seeks to recover it through the VAT input tax refund procedure, provided it is not established there and has no right of direct deduction.

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Last updated: 18 June 2026Published: 27 January 2026

Source: https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/vat-refunds_en

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Logistics concept

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Definition & Explanation

A company has paid VAT on goods or services in another EU Member State and seeks to recover it through the VAT input tax refund procedure, provided it is not established there and has no right of direct deduction. The procedure sets out eligibility criteria, submission deadlines, minimum claim amounts, required documentation, and the roles of the competent tax authorities. Within the EU, applications are submitted electronically via the portal of the claimant's home tax authority, which forwards them to the refund state. Without this mechanism, non-established businesses would bear foreign VAT as a permanent overhead – a significant competitive disadvantage in cross-border trade.

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