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New Information Regarding VAT Refunds & VATs on Digital Services

March 16, 2015

A new guide released by the EU aims to clarify who value-added tax refunds apply to and how refunds are claimed.

A new guide on European Union member states’ policies on value-added-tax (VAT) refunds for visitors has been published by the EU’s Taxation and Customs Union Directorate General. Travelers will be able to use to guide to understand who qualifies as a visitor and how the VAT refund works.

New information regarding VAT

  • The guide makes clear that refunds are available exclusively to people who permanently or habitually live outside the EU, with certain exceptions.
  • According to the guide, consumers cannot expect a full refund.
  • EU businesses who offer “digital services” to end consumers in other jurisdictions have been required, since January 1, 2015, to charge and account for VAT in the consumer’s jurisdiction.

You can view the full guide and a more detailed explanation of the guide and the digital VAT information can be found in our article, “European Commission Publishes Guide to VAT Refunds”.

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