German VAT refund guide : EURO 2024
On this Friday 14th of June, the UEFA is launching the 2024 European Football Championship. Hold in Germany across 10 cities until July 14, this sport event will attract 24 European teams, around two million football fans, thousands of professionals from sport and media sectors.
The sale of football game entrance tickets, as well as accommodation, restaurant and transport services will generate a considerable income for German host cities and Lander. The chargeable German VAT of 7% and 19% will increase the country’s tax collection.
The German VAT being recoverable on business expenses of companies, sport federations and broadcasting operators, it can be deducted in VAT returns of locally registered structures or claimed back from the Federal Tax authority by foreign taxpayers.
Hospitality and entertainment expenses can also give right to the VAT deduction or refund, in respect of certain limits. The non-respect of these limits could lead to the VAT registration liability in Germany.
German VAT refund conditions
The non-registered foreign taxpayers must fulfil specific conditions for obtaining VAT refund in Germany :
- Being not liable for VAT registration in Germany
- Having no seat, fixed establishment nor residence in Germany
- Doing no taxable supplies in Germany (with some exceptions)
The non-EU companies must also check the presence of the reciprocity agreement between their country of establishment and Germany. The reciprocity agreements are concluded so far with over 40 countries.
German VAT refund rules
The minimum amounts for claiming German VAT are fixed as per below:
- EU companies : 50 € for the annual reclaim / 400 € for quarter and semester reclaims
- Non-EU companies : 500 € for the annual reclaim / 1000 € for quarterly submitted reclaims
Only five VAT claims can be submitted for different periods of the same calendar year, without overlapping.
German VAT reclaim timeline
The German VAT can be claimed back immediately after the last day of the preceding calendar quarter/ year, but at the latest:
- EU claimants: until September 30th of the current year for the immediately preceding calendar year’s expenses
- non-EU claimants: until June 30th of the current year for the immediately preceding calendar year’s expenses
VAT refundable expenses
Germany is refunding VAT on all business related expenses used for non-exempted activities.
The only exception concerns the non-EU companies which can’t recover German VAT on fuel expenses.
For the VAT recovery, the taxpayers must dispose of original and compliant tax invoices.
German VAT recovery procedure
The VAT reclaim must be done electronically.
The EU-companies are filing the VAT reclaim on the tax portal of their country of establishment.
The non-EU companies are filing the VAT reclaim on the German Tax portal after a prior registration. The original invoices, the signed claim form and further accompanying documents must be provided additionally to the German tax office.
The local tax representative being not mandatory in Germany, foreign companies are free to appoint a resident or non-resident tax agent for VAT recovery purposes.
BtoBnice will be happy to act as your VAT recovery agent in Germany.
Feel free to contact our VAT expert for further information: contact@btobnice.com
