Value-Added Tax


Value-Added Tax (VAT) is a national sales tax on goods and services that is levied by many countries around the world. In 1987, the European Union (EU) began offering refunds of VAT to foreign companies that travel to participating EU countries for business purposes. University employees who travel to these countries must participate in the VAT program.

The following countries refund VAT to foreign companies as a business and investment incentive:

Austria
Belgium
Denmark
Finland
France
Germany
Ireland
Italy
Luxembourg
Netherlands
Sweden
Switzerland
United Kingdom

VAT rates in the participating countries currently range from 6.5 percent to 25 percent, depending on the country. Some countries do not refund the full amount levied. Depending on the country, VAT may be refunded on: hotels, restaurants, car rentals, parking, gasoline, diesel fuel, transportation within the country, business entertainment, telecommunications, conferences, trade shows, training courses, and professional fees. Certain VAT is not refundable, such as on alcohol and laundry services. See the VAT Reclaim Parameters for a summary of the expenses that can be reclaimed.

Participating in the VAT Program

University travelers must participate in the VAT program by submitting their receipts so refunds can be pursued. Receipts that are based on O-CONUS per diem are not reviewed for any other purpose.

A third party processes the necessary documentation on behalf of the University to recover VAT. The third party returns net recovered VAT to the University, and the money is then returned to the departmental budget that incurred the charge.

What You Need to Do:
  1. Collect original receipts.

  2. Complete the Value-Added Tax Reclamation Receipt Transmittal cover sheet.

  3. Attach the receipts to the cover sheet, and send to the address indicated on the cover sheet.


Related Procedures

Reimbursement of Lodging, Meals, and Incidental Expenses for O-CONUS Travel

Value-Added Tax Reclamation

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