How to Create a VAT Claim in VAT4U
Written by VAT4U Team
Updated at December 1st, 2024
Table of Contents
In VAT4U, there are several convenient ways to create a VAT claim:
-
VAT Recovery Menu:
- Navigate to VAT Recovery and select Create VAT Claim.
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Manage Expenses Table:
- Go to the Manage Expenses table, filter the invoices you wish to include in the
claim, then click on Batch actions and select Create VAT claim.
- Go to the Manage Expenses table, filter the invoices you wish to include in the
-
Manage VAT Claims:
- Access Manage VAT Claims and click Create a claim in the top left corner.
Preparing to Create a Claim
Before adding an invoice to your VAT claim, ensure that the Refund status of your invoice is set to Ready.
Steps to Create the Claim
Claim Information:
Fill in the required details such as Claim applicant, Refund country, and Claim start and end date.
The system will auto-fill the applicant's address and details. It’s good practice to verify that this information is accurate and complete. Once ready, click Next.
Expenses Must Be in "Ready" Status for VAT Claims
Only expenses with the refund status READY can be included in a VAT claim.
Please note: The status READY is a technical designation indicating that all required mandatory fields have been populated in the system. It does not guarantee that the invoice is compliant or that the data entered is correct and accurate. Ensure thorough review and compliance checks before submission.
Sorting (sequence numbers):
By default, expenses are sorted by the order in which they were entered into the VAT4U system, with the earliest entries appearing first. You can also choose to sort by deductible amount grouped by vendor. This will group expenses by each vendor and list vendors with the highest deductible amounts first. Alternatively, you can sort expenses based on a custom table order, with items appearing in the claim according to the order in the table below the options:
Claim Summary:
After the system combines all the invoices, you will see a summary of the claim
information along with the Risk assessment results.
This helps identify any potential issues with your claim. Below the results, you’ll find a list of expenses included in the claim. Click Next to proceed.
In Attachments, you can review, manage, and add documents in VAT4U as needed. To attach documents to your claim, select the ones on the left, then click Attach Selected. You can also choose to Attach All Invoices from the left or remove specific documents or all documents. Additionally, you can upload new documents directly to this page. To remove optional documents, simply click Remove All Non-Mandatory.
Pre-Validation:
This is the final step before creating the claim. If there are no issues, click Next.
The claim is now created in Draft form, meaning you can still make revisions before finalizing. You can also download all claim information in PDF format.
Important Tabs After Creating the Claim
Once your claim is in draft form, you’ll have access to several important tabs if you click on the claim under the Manage VAT Claims tab:
- Overview: General information about your claim.
- Queries: Add any queries related to the claim. Please note that the Claim Queries tab becomes available once the claim is in "Queued" status. To move it to "Queued," review and approve the claim from the Overview tab.
- Decision Appeals: Upload decisions from tax authorities here. The Claim Decision & Appeals tab also becomes available once the claim is in Queued status. To move it to Queued, review and approve the claim in the Overview tab.
- In Attachments, you can view and manage documents in VAT4U or add new ones if needed.
- Submission: The Claim Submission tab becomes available once the claim is in Queued status; to move it to Queued, review and approve the claim in the Overview tab.
On each claim-related page, you’ll find a messaging box intended for leaving notes and communicating with team members or clients who have access to VAT4U.
Messages can either be internal, visible only to users within the same company domain (e.g., @vat4u.com), or public, visible to anyone with access to the claim. You can also tag specific users in messages, and they’ll receive the message by email.
Finalizing the Claim
- Return to the Overview tab.
- Click on “I have downloaded and verified the claim details” and then select Approve. This changes the claim status from Draft to Queued.
- You can find all of your claims in the Manage VAT Claims section.
Next Steps
To proceed with your claim:
- Download the Claim: Go to the Submission tab and click on Download Local extraction.
- File the Claim: Depending on your country, you may be able to file the claim directly from VAT4U.
Cancelling a Claim
If you encounter any issues with your claim, you can cancel it by pressing the Cancel Claim button under the Submission tab associated with each claim:
Domestic vs Foreign VAT Claims: Key Differences
In VAT4U, the process for creating foreign and domestic VAT claims is nearly identical. However, for domestic claims, three key differences apply:
- Representative Appointment: For domestic claims, you may have the option to appoint a representative.
- Document Attachments: Unlike foreign claims, attaching invoices for submission to authorities is not required for domestic claims.
- Submission Method: Domestic claims involve generating a report rather than submitting via a tax portal.
