Increase the likelihood of faster VAT refund

Retrieving VAT on fuel seems easy, but in practice pitfalls is hiding. An example is a partial refund on passenger cars (M1) and light commercial vehicles (N1).

Each Member State has its own rules on transactions of M1 and N1 vehicles.

Each Member State has its own rules on transactions of M1 and N1 vehicles. If these rules are not followed, this will increase the likelihood that your file will (in whole or in part) become rejected and/or that supplementary questions follow from the tax authorities, which results in further delay.

Although this risk can never be ruled out completely, you can reduce it considerably. The key lies in clear, pure invoices: invoices on which: only transactions can be found from trucks above 7.5 tonnes in weight (N2 and N3).

As such, an "clean' invoice reduces chance on rejections drastically and makes the control process much easier for the tax authorities.

How do you do this? The most effective solution is splitting up your transactions about different suppliers or customer numbers:

• one with the N2 and N3 vehicles;
• One with the M1 and N1 vehicles. This way, your largest refund will remain clear, consistent and easy to support. The result: a clear VAT file and, often, a more flexible handling of your refund. You may also consider including only the invoices with transactions of N2 and N3 vehicles in the quarterly returns, and transferring the invoices with transactions of M1 and N1 vehicles to the annual declaration (supplementary declaration). This way your quarterly declarations consistent stays, while most of your VAT refund is already included.