Originally under Tax.Travel

A Practical Guide to VAT Refunds for US Businesses

Below is a summary of our main article - The Ultimate VAT Refund Guide for US & Global Businesses

Many US businesses spend significantly on international travel, events and supplier services, yet a large share of the VAT paid overseas is never reclaimed. Industry research shows that billions of dollars in recoverable VAT are left unclaimed each year. VAT systems outside the United States operate very differently to US sales tax, and without the right structure in place most companies either do not claim at all or submit incomplete applications that are rejected.

This short guide highlights the essential points every finance team should know before pursuing a claim.

VAT outside the United States

VAT is charged at each stage of the supply chain. Businesses recover the VAT they pay on their inputs through an input tax credit. If a US company buys services overseas and does not have a VAT registration in that country, the only route to recovery is through a non resident refund scheme. These schemes allow a refund of VAT on eligible business expenses when the US company has no taxable presence in the country.

Eligibility is the First Barrier

The key rule across Europe, the United Kingdom, Switzerland, Norway, Iceland and several other jurisdictions is that the US company must not be established or required to register for VAT locally. If the business holds stock, has staff, or carries out taxable activity, it may lose access to the refund scheme and instead need to register for VAT in that country.

Japan is the exception. A foreign business begins as tax exempt and must opt in to taxable status in order to recover Japanese Consumption Tax. The recovery mechanism therefore depends entirely on the jurisdiction.

Deadlines are Fixed and Non-Negotiable

The EU Thirteenth Directive has a typical deadline of 30 June following the year of expenditure. The United Kingdom runs a separate cycle from 1 July to 30 June with a deadline of 31 December. Canada requires claims to be filed within one year after a convention ends. Switzerland and Norway follow an annual cycle with deadlines around 30 June. The UAE accepts annual applications between March and August. Japan, Australia and New Zealand link their refund timing to the business’s tax or GST return cycle.

Missing a deadline usually means losing the refund.

Documentation must Be Precise

Every country requires complete invoices that meet its domestic VAT rules. Claims are rejected for incorrect supplier VAT treatment, missing invoice details, absence of business purpose or mismatched entity names. Many jurisdictions give businesses only a short window to respond to follow-up queries. Maintaining a clean digital archive of invoices and proof of payment is essential.

Not all Expenses are Recoverable

Hotel accommodation, exhibition fees, professional services, transport and road tolls are often recoverable. Client entertainment is usually blocked. Meals and restaurant expenses depend on the country. Each jurisdiction has its own interpretation of what qualifies, so finance teams must classify expenses correctly from the start.

Digital Tax Systems are Changing the Rules

Many countries are moving toward mandatory electronic invoicing. Governments will validate input VAT based on the digital invoice transmitted through their system, not on scanned PDFs. This shift means businesses need systems capable of receiving and storing compliant e invoices if they want future refunds to be accepted.

Why this matters for US Businesses

VAT reclaim can return a meaningful percentage of international spending. For some companies it can reach double digit cash savings each year. The opportunity is real, but only for organisations that approach the process with structure, accurate documentation and timely filing.

Antravia supports businesses by helping them understand eligibility, prepare compliant documentation, and structure their operations in a way that protects refund rights in each jurisdiction.

For companies that want a deeper review of recoverability by country, the full guide provides a detailed analysis of the EU, the United Kingdom, Canada, Switzerland, Norway, Iceland, the UAE, Japan, South Korea, Australia and New Zealand.

See our specialist pages
Global VAT Reclaim - Recover the Tax you’ve already paid abroad
UK VAT Reclaim for U.S. and Global Businesses
EU VAT Reclaim for U.S. and Global Businesses
UAE VAT Reclaim for U.S. and Global Businesses
International VAT Reclaim

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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