International transport companies regularly incur expenses outside their home country. After a busy summer season, these costs can quickly add up: fuel, tolls, vehicle maintenance, accommodation and other business-related services.
The good news is that VAT paid abroad may often be recoverable. Understanding foreign VAT recovery can therefore help transport companies reduce their operating costs and recover money they are entitled to claim.
This guide explains how foreign VAT recovery for transport companies works, which expenses may be eligible, and how to start the recovery process.
What Is Foreign VAT Recovery?
Foreign VAT recovery is the process of claiming back Value Added Tax (VAT) paid by a company in a country other than the country where it is established.
Why Can a Transport Company Recover VAT in Another Country?
International transport companies operate across borders and regularly purchase goods and services abroad as part of their business activities.
When these expenses include recoverable VAT, companies may be able to submit a VAT refund claim to the relevant country, provided they meet the applicable conditions.
The Difference Between Domestic and Foreign VAT
Domestic VAT generally refers to VAT paid and recovered in the country where your business is registered.
Foreign VAT is VAT paid in another country. Its recovery usually follows a specific refund procedure and may require submitting supporting documents to the relevant tax authority.
Which European Countries Are Concerned?
Foreign VAT recovery is available across the European Union, subject to each country’s rules and eligibility requirements.
Depending on your company’s activity and expenses, FastVAT can help businesses recover VAT across 27 EU countries, as well as in Switzerland, Norway and the United Kingdom.
Which Transport Expenses Can Be Eligible for VAT Recovery?
Several expenses incurred during international operations may include recoverable VAT.
TRANSPORT EXPENSES
VAT on Fuel
Fuel is one of the largest expenses for transport companies. VAT paid on eligible fuel purchases abroad may be recoverable, depending on the country and applicable conditions.
VAT on Tolls
Road tolls and motorway charges can represent a significant cost for international fleets. Where VAT is charged and recoverable, these expenses may be included in your foreign VAT refund claim.
VAT on Vehicle Maintenance
Expenses related to vehicle repairs, servicing and maintenance carried out abroad may also qualify for VAT recovery.
VAT on Driver Expenses
Depending on national regulations, VAT paid on certain business expenses related to drivers, such as accommodation or other professional services, may be eligible for recovery.
HOW?
How to Recover Foreign VAT in Europe
The foreign VAT recovery process varies depending on where the VAT was paid. However, several key steps are common to most claims.
- Required Documents
To support your VAT refund application, you will generally need documents such as:
- Original or electronic supplier invoices
- Proof of payment where required
- Company registration and VAT information
- Details of the expenses included in the claim
Keeping complete and accurate records throughout the year can make the recovery process faster and easier.
- VAT Refund Processing Times
Refund processing times vary from one country to another. They depend on the local tax authority, the completeness of your application and whether additional information is requested.
Submitting a complete and accurate claim is essential to avoid unnecessary delays.
- Procedures Vary by Country
Each country has its own VAT refund rules, deadlines and procedures. Eligibility can also vary according to the type of expense and the company’s activity.
This is why working with a specialist in international VAT recovery can simplify the process and help ensure that your claims comply with local requirements.
MAKE THE RIGHT CHOICE
Why Choose FastVAT for Transport VAT Recovery?
Recovering VAT in several countries can quickly become time-consuming. Different rules, documents and deadlines must be managed for each market.
FastVAT helps international transport companies simplify their foreign VAT recovery process by managing claims from start to finish.
Our experts can help you:
1
Identify potentially recoverable VAT
2
Prepare and submit your refund claims
3
Manage country-specific procedures
4
Track your applications and reimbursements
5
Recover VAT across Europe and other eligible countries
With a single partner for your international VAT recovery, you can spend less time managing administrative procedures and focus more on running your transport business.
Conclusion
For international transport companies, VAT paid abroad can represent a significant amount of money left unrecovered.
Fuel, tolls, maintenance and other professional expenses can all contribute to substantial VAT amounts throughout the year. As the end of the year approaches, now is the right time to review your international expenses and identify the VAT you may be able to recover.
Don’t leave recoverable VAT behind. Contact FastVAT to assess your foreign VAT recovery opportunities and simplify your claims across Europe and beyond.
