VAT Database


12. VAT Refund

VAT refund is the most well-known system among Japanese value-added tax systems for Japanese companies. Also known as "VAT refund". European VAT sponsored by a Japanese corporation that does not engage in taxation activities in the EU is required to refund (return) all the VAT paid by each taxation office of each member country can apply for a VAT refund. This is the VAT refund system for non-residents.

Examples of items to be refunded by a VAT refund are various expenses such as travel expenses (T & E expenses) such as hotel expenses, taxi fares, car rental fees, restaurant fees, etc., expenses of the representative office, etc. For VAT refunds to non-residents, the target is "companies other than Europe that do not conduct taxable activities in Europe", so Japanese companies that are subject to taxable activities in Europe are subject to additional value.

It is necessary to use VAT refund on tax return.

*Reference information:当社付加価値税還付サービス 

The case of VAT refund - Reduction of taxation costs for importing and exporting

When Japanese company A delivered machinery and equipment to company B in Germany, logistics companies were asked to pay import VAT and customs duties at customs clearance. Since the cost of machinery and equipment was about 100 million yen, these costs were close to 20 million yen.

→ These tax costs can be returned by nearly the full amount with our own developed solution. However, please note that logistics companies should not be proposed.

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