When I went overseas, I bought something at the Tax Free Shop and got a VAT refund at the airport. What's the difference?
An individual traveler (B2C) who bought a goods at the Tax Free shop can obtain a VAT refund in the airport after receiving the stamp of Taxation office. The VAT refund of business trip (B2B) should be submitted to the Central Taxation Office directly every quarter or every year. The B2B VAT refund is applicable to the expenses which is spent for business purpose, such as Hotel, Taxi, Restaurant, Renter Car, Seminar etc. Please check which items are refundable in the country.
I travel abroad to several countries in Europe. Do all countries refund the VAT for Business trip?
It depends on the regulation of the country. European Union consists of 28 countries. 2 countries (Germany, Slovenia) only refund VAT to the country who has agreement reciprocally. 15 countries refund VAT to all countries.
Korea is a reciprocal country, and only countries that provide VAT refunds to Korean companies provide VAT refunds. Please check the latest updated information as it may change from time to time as it is a country-specific policy.
Do I have to submit the original receipt?
Most of Tax Offices request the original receipt at the time of refund request or after verification. In case the receipt or invoice is copy, the Tax Office will reject the VAT refund request. The reason why Dolijo is gathering the original invoice is to avoid such losing money cases.
I have submitted the original receipt to settle travel expenses after coming back to home country. Does it matter even though I settle travel expenses with the copy of receipt at home country?
It depends on the regulation of each countries. You need to check with the Taxation office of your home country. Most of Tax Offices accept the scanned copy subject to spent abroad.
I receive a daily allowance for overseas business trips. What should I do in this case?
In case you receive a daily allowance, nothing to do additionally. Just hand over your receipts and invoices to Dolijo. Dolijo will request VAT refund to the Tax Office on behalf of you.
Is it possible to apply for a VAT refund on business trip expenses in 2019? Please let me know the application deadline.
Netherlands accepts receipts you spent 5 years ago, however the rest of 13 countries accept the receipts only previous years.
In many countries, the deadline of VAT refund request of the previous year is June or September of this year. In case of UK, travel expenses from July of the previous year to June of this year must be submitted by December.
Please check the refund information by country for details.
What should I pay attention to when receiving an invoice or receipt?
In the case of a small amount, a simple receipt is possible, but in the case of a large amount such as a hotel fee, the English company name and address must match the English business registration certificate. Refunds may be refused if there are any errors or differences.
Can an individual receive a VAT refund?
Since the VAT refund of business travel is for an enterprise, it is taken as other income of the company. However, according to the company's internal decision, the refund amount can be shared to employees.
How long does it take to get a refund?
It varies from country to country, but it would take 3 to 12 months.
In some countries, meal and beverage were refunded, but in other countries, they were not. What is the reason?
VAT refund items and rates vary from country to country.
Please check the refund information by country.
I used a rental car while on a business trip abroad, but 100% of the VAT was not refunded. What is the reason?
In some countries, only 50% of the VAT is refunded because the Tax Office regards you didn't use the rental car 100% for business purpose. You can prove that you have used the rental car for 100% business purposes by recording the driving history (departure place and time, arrival place and time, driving distance, purpose of use), however it is not easy to get 100% VAT refund.
In case the Taxation office rejects the VAT refund request, can I appeal one more time?
Although it varies from country to country, in general, you can raise an objection one time for a refund that has been rejected.
In this case, you can raise an objection by submitting explanatory materials.