Although the European Council has been considering an extension of the 13th Directive VAT deadline that is 30 June 2020, this is yet to be confirmed. This means that all non-European businesses must continue to prepare their cross-border VAT claims as if the deadline is still around the corner.
Any companies registered outside of Europe who wish to claim their foreign VAT incurred on European A/P or T&E expenses for the claiming period of 01 January 2019 to 31 December 2019, must submit their claims before the 30th June 2020.
It is worth noting that certain European member states adhere to the same deadline as the EU refund directive (8th Directive) for 13th Directive claim submissions. This is not due to Coronavirus and has been the case for many years. Countries with a VAT submission deadline on the 30 September 2020 are: Belgium, Cyprus, Denmark, Estonia, Finland (Since 2019), Greece, Hungary, Italy, Latvia, Portugal, Romania and Spain.
It has also been confirmed in writing that the Swiss VAT authority will not be granting an extension of the 13th Directive VAT deadline and will remain 30 June 2020.
These foreign VAT refunds can be used as a welcome liquidity booster to a company’s bottom line – especially in the Coronavirus-related economic downturn that’s afoot. The VAT refunds are made even more attractive because the claims are made on last year’s foreign expenses and in many instances, can be reclaimed going back up to 4 years (The Netherlands allows this, for example).
However, the task of VAT Recovery is complex and onerous so we advise you to speak to one of our specialists to help your business with its refund claims. This is especially true if you have not filed a refund request as yet and may not have the internal (and remote!) resources to file your claim on time to the VAT Authority. Working with experts can fast-track your claim as well as maximise its full refund potential.
Download the 2020 13th Directive international VAT table to discover the reclaim opportunities available to your business.
Update: France has extended its June 13th directive June deadline to 30 September 2020. We await further changes among other member states but for now, no others have informed of any extensions.