What is a Tax Certificate?

A Tax Certificate is an official document that verifies a company’s tax status and confirms that it is registered and compliant with local tax laws. It serves as proof that the business is recognized by tax authorities and is eligible to claim back VAT in certain jurisdictions.

Who Issues Tax Certificates?

Tax certificates are typically issued by the local tax authority or government revenue office in the country where the company is registered. Each country has its own process and requirements for issuing these certificates, and they may be known by different names depending on the jurisdiction (e.g., "Certificate of Fiscal Residence"). 

Why Do We Need It in the VAT Recovery Process?

Proof of Tax Status: For VAT recovery, tax authorities often require confirmation that the claimant is a legitimate, tax-registered business in its home country. The tax certificate serves as evidence of this.

Cross-Border Verification: In cross-border VAT recovery, the tax certificate helps foreign tax authorities verify the authenticity of the VAT recovery claim information. This ensures that only eligible businesses receive VAT refunds.

Compliance: Many countries mandate the submission of a tax certificate when filing VAT claims. Without it, VAT recovery claims may be rejected or delayed.

Avoiding Double Taxation and Fraud: For businesses operating in multiple countries, the tax certificate also ensures that VAT is not being claimed from a country where the company isn’t registered, thus avoiding issues of double taxation or fraudulent claims.

How to upload your tax certificate in VAT4U

Instead of attaching it to each single new Claim, you can save it and then the system will pick it up when creating new claims to speed-up the process. To add your tax certificates, simply click on Company profile (the Claimant Company must be chosen) and click on the Add New Certificate button. You'll be prompted to provide the following details:

• Country: Select the country where the certificate applies.
• Valid From- Valid To: Set the start and end dates for the certificate's validity.

Once uploaded, the system will display the certificate with key information, including:

• Country: The country linked to the certificate.
• Valid From / Valid To: The certificate's validity period.
• File Name: The name of the uploaded file.
• Updated At: The last update date of the certificate information.
• Updated By: The user who last updated the certificate.
• Actions: Options to edit the file, change the dates, or delete the certificate if needed.

Don’t forget to save changes after uploading or updating your tax certificates.