Are you an entrepreneur operating within the European Union? Thanks to the provisions of the so-called Eighth Directive, you can apply for a VAT refund charged in another EU member state. Find out how you can recover part of these funds and who can benefit from this solution.
What does VAT refund in Poland based on the Eighth Directive involve? Who is eligible for it?
The legal basis allowing Polish companies to apply for a refund is Council Directive 2008/9/EC. Its provisions are particularly useful for companies that are not registered as VAT taxpayers in the country where the costs necessary for conducting business were incurred. As a result, such companies cannot reclaim VAT through a local value-added tax return. The Eighth Directive is designed to help them by ensuring the possibility of a refund in accordance with EU law.
Who can apply for a VAT refund?
In order to apply for a VAT refund, a business must meet several conditions. The most important include:
- having the status of a VAT taxpayer in any EU member state,
- not having a fixed place of business in the country where the costs were incurred,
- proving that the purchased goods or services on which VAT is being reclaimed are intended for taxable business purposes.
The entity covered by the Eighth Directive should also not be engaged in transactions subject to taxation in the member state refunding the VAT.
Do you incur expenses charged with VAT in the EU? Check which of them qualify for a refund
A business interested in reclaiming VAT under the Eighth Directive may deduct it if the expenses were incurred for:
- fuel and car rental,
- travel and accommodation expenses (e.g. hotel stays, business trip meals, etc.),
- costs resulting from participation in trade fairs, conferences, and events,
- professional services such as legal assistance.
It should be remembered that in each EU member state, the list of expenses eligible for VAT refund may differ slightly depending on local tax law provisions.
How to apply for VAT refund? What about companies from outside the EU?
If you want to learn how VAT refund in Poland works for companies operating within the EU, as well as detailed guidelines regarding the Eighth Directive, visit https://polishtax.com/information/polish-tax-law/vat/vat-refund/ for more information on applicable regulations.
And what about companies from outside the EU? Businesses operating in countries that are not EU members can benefit from the provisions of the so-called Thirteenth Directive. It defines the legal framework for reclaiming VAT charged in EU member states for companies not registered as VAT taxpayers in the EU. The list of expenses eligible for VAT refund is extensive and includes, among others, travel, accommodation, and business services carried out in the EU. At the link provided, you will also find all the necessary information to help you recover outstanding funds.
Obtaining a VAT refund under EU directives is a real opportunity to recover part of the expenses incurred while doing business in other European Union countries. This allows entrepreneurs to improve cash flow and manage their companys budget more effectively. It is worth remembering that the procedure of VAT refund in Poland requires meeting certain conditions and providing proper documentation, but in practice it can bring tangible financial benefits. Whether you run a business within the EU or outside its borders, it is worth exploring the available options and understanding the rules of VAT refund in Poland so that you do not leave your funds in foreign tax systems.