If you went to Germany on a business trip or exhibited at a German trade fair in 2006, you can potentially save approximately 14% of your business expenses by claiming back the German VAT you incurred during the trip. Your application must reach the Federal Tax Office in Germany by 30 June 2007.
Hotel accommodation, training courses, expenses for conferences and exhibitions, meals and beverages, car rental and car fuel, parking, public transport and taxi fares are all VAT-refundable products and services. However, in order to qualify for the refund procedure you must not be resident in Germany, have no place of business or domicile in Germany and do not own property or maintain a branch there.
Cordula David, Manager of the Tax Services Department of the German-British Chamber, explained: “A refund of the VAT means a direct saving on costs and can be a real advantage over competitors who are not aware of the procedure. Many companies fail to apply for a refund for two main reasons: they do not know about it or they dread the administrative work involved.”
More information on refundable expenses and the documents required can be obtained from the Tax Services Department of the German-British Chamber of Industry & Commerce. The staff there can also carry out the whole application process on behalf of your company: from preparing your application in German to filing it with the German tax authorities and responding to their enquiries.
For more information: Tel: +44 20 7976 4161 or e-mail: vat.refund@ahk-london.co.uk.
