VAT reimbursement in the EU and in Germany

In Germany, as well as in the other EU countries and also in Switzerland, companies receive this tax back even after several years if they have had taxable transactions, for example from the sale of goods, a service or the rental of a property. This works with companies from Switzerland because the EU has a so-called reciprocity agreement with this country.

However, due to the lack of a reciprocity agreement, companies from China or Russia are well advised to make sales here, even if only by selling used items in the country at the trade fair. You don't have to set up a company in the EU to do this. Through the sale of the exhibition stand, a computer or other items, the company has taxable sales and is therefore taxed regularly with a simultaneous right to reimbursement of input tax. There is then no longer any need to apply for a sales tax refund, which would not be granted anyway. The company can have the input tax invoiced to it refunded even if it is a multiple of the VAT amount to be paid.

If there were no sales in the relevant year, companies from most other countries can apply for a VAT refund under certain conditions. The application must be submitted in the correct form and on time.