Refund of VAT Paid Abroad

30 August, 2024
2 minute read

When you pay VAT abroad, you are entitled to applying for a refund of this – which can amount to quite large sums. Yet, many forget to apply for refund of VAT paid abroad or deem it to be too burdensome.

The deadline for applying for a refund of VAT paid abroad during 2023 is 30 September 2024.

Note that other deadlines apply for non-EU countries.

This VAT paid abroad cannot be deducted from your Danish VAT statement. And it does not count as deductible from your tax statement either.

What VAT paid abroad could be refunded?

This could especially be relevant for companies where employees have many travel days abroad and therefore have travel expenses. These travels often include accommodation, tickets for events, dining, transportation, etc., where VAT is added, but is deductible.

Note that you can only apply for a refund if you do not have VAT-subject activities in this country – if you do, your VAT deduction would be through the local VAT registration.

When can you get a VAT refund?

It is the rules in the local country that determines whether you can actually get a refund. Some countries may allow refunds on restaurants, cars etc., whereas other countries do not. Also, you can only apply for refunds on amount that exceed the limit for the relevant EU country. In short: You have to get familiar with the VAT and tax rules in all the relevant countries.

In many cases, it is a complicated puzzle, but outsourcing it will end up being worth it. You can register representatives (other businesses) to do the application for you. But both you and your representative must have MitID and an E-tax password.

Applying for a refund of VAT paid abroad

You must submit the application at E-tax for Businesses. The Tax Agency will then forward your application to the relevant EU member state. Note that the application itself is quite extensive and you must have invoices ready.

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