Directive 2008/09/EC, which came into effect on 1 January 2010, introduced a new system for businesses established and VAT-registered within the EU to reclaim VAT incurred in other EU member states. Under this directive, refund claims are submitted through the online portal of the tax authority in the claimant’s home country, replacing the old 8th VAT Directive procedure, which required paper submissions directly to the country where the VAT was paid.

Often referred to as the “9th Directive,” Directive 2008/09/EC also revised the deadlines for both submitting claims and processing refunds. As before, claims are handled by the member state where the VAT was incurred, refunds are calculated according to that state’s deduction rules, and payments are made directly by that state to the claimant. While the updated procedure is designed to streamline and speed up refunds, businesses must pay close attention to deadlines and adapt their internal processes accordingly.

The directive does not change the rules for businesses established outside the EU. Those entities must still reclaim VAT under the 13th VAT Directive.

The 2025 European VAT Refund Guide provides detailed technical and practical information on the procedures under both Directive 2008/09/EC and the 13th VAT Directive. It covers all 27 EU member states, the United Kingdom, three EFTA countries (Iceland, Norway, Switzerland), as well as Bosnia & Herzegovina, which also permits VAT recovery.

A business registered for VAT in one EU member state can recover VAT paid in another member state. However, if the business is liable or eligible for VAT registration in the state where VAT was incurred, it must register there and reclaim VAT through periodic VAT returns. Refund applications will be denied if the business has its residence, registered office, a fixed establishment, or taxable supplies in the member state where the VAT was paid.

The types of expenses on which VAT can be reclaimed differ between member states.

For EU businesses, VAT recovery is most commonly available on services. However, since the new place-of-supply rules introduced on 1 January 2010, the amount of VAT incurred on cross-border services has decreased significantly, as such transactions are generally subject to the reverse charge in the customer’s country of establishment.

Recovering VAT on goods is more complicated. In most cases, supplies of goods from one member state to a VAT-registered customer in another are zero-rated, provided the customer’s VAT registration number is given to the supplier. If goods are acquired in another member state, VAT can be reclaimed only if no other relief applies and the purchase does not create a VAT registration obligation in that state.

With few exceptions, when goods are bought for resale (inside or outside the member state), the business will usually need to register for VAT in that state and recover input VAT through its VAT returns. Direct recovery is therefore limited to goods purchased and consumed for business use within the member state of purchase (e.g. local office supplies).

Refund applications must generally be submitted electronically through the tax authority portal of the claimant’s home country, no later than 30 September of the year following the refund period. This deadline is strict and usually not extended.

All claims under Directive 2008/09/EC must be filed electronically. However, technical requirements—such as the submission method, certifications, and file formats—differ from country to country.

At the initial stage, most member states only require the electronic application submitted in the country of residence. Once the application is forwarded to the state where VAT was incurred, that state may request further documents, such as invoices (original or copies), import papers, or other evidence. The Court of Justice of the European Union (CJEU) has confirmed that, in certain cases, a nonresident business may submit duplicate invoices if originals are lost beyond its control.

Directive 2008/09/EC introduced fixed time limits for processing refund claims. The member state of refund must decide within four months of confirming receipt of the application. If further information is requested, the claimant has one month to respond, and the member state then has two months to issue its decision.

If the claimant does not respond, the state must issue its decision within two months after the response deadline has expired. When additional information is requested, the decision period extends to six months. If a second round of information is required, the decision must be issued within eight months of the original application.

Once a refund is granted, payment must be made within ten business days after the decision deadline. Delayed payments are subject to late-payment interest.

The rules for VAT recovery by non-EU businesses are broadly similar to those for EU businesses, but with some important differences: