Despite the setbacks and difficulties that the COVID-19 pandemic has created for many businesses, the EU commission has not announced an extension on the 8th Directive VAT deadline. Therefore, for EU member states claiming from each other, it’s business as usual and claims will not be accepted post the 30 September deadline date.
What is the claiming period for this 2020 Deadline?
VAT can be claimed on invoices dated from 1 January 2019 to 31 December 2019. To illustrate, if your business’s employees travelled to other EU member states (and you do not have a permanent or fixed establishment in that member state), then you are entitled to claim back the VAT on your 2019 expenses. It’s worth noting that the Netherlands allows you to go claim as far back as four years.
Non-EU businesses Can Still Claim from Certain Countries for this Deadline
All hope is not lost for Non-EU businesses who may have missed this year’s 13th Directive deadline at the end of June. Businesses based outside of Europe will still be able to claim from certain EU countries based on two principles:
One: Certain EU member states adopt the same September deadline for both Non-EU and EU businesses
To alleviate the burden of running two separate deadlines some EU countries opted to combine the deadline into one September deadline (this happened in 2010 and is completely unrelated to the COVID-19 Pandemic). This means that Non- EU businesses will still be able to claim VAT on their 2019 expenses from the following countries: Belgium, Croatia, Denmark, Finland, Estonia, Greece, Hungary, Italy, Latvia, Poland, Portugal, Romania and Spain
Two: Certain EU Member states have granted non-EU companies an extension of the 13th Directive deadline to September 30 September due to the COVID-19 Pandemic
A handful of EU member states granted extensions and easements since the pandemic broke earlier this year. Namely, France, Monaco, Lithuania and Serbia extended the 13th Directive deadline by 3 months to the coming September deadline. Germany and Slovakia have granted some easements and provisions on late submissions (Meaning that a non-EU business may still be able to submit to them on account of difficulties caused by the pandemic).
Assistance with your 2020 VAT refund Requests
If you’re worried that your business may not make the 2020 VAT deadline on account of resources and remote working issues causing delays, VAT IT is able to step in and fast-track your claim by using our VAT reclaim technology to integrate with your expense management system and pull the relevant 2019 expense data. Get in touch with us to find out how we can help.