In Spain, reciprocity agreements apply only to certain types of products or services. Imagine your business is in Norway. Norway has a reciprocity agreement with Spain, therefore you assume that you can file a VAT refund on all travel expenses in that country. In addition, there are situations in which Spain accepts VAT returns from companies in countries that do not have a reciprocity agreement. Therefore, if your company is in Sweden, which does not have a reciprocity agreement with Spain, but your employee went to Spain for a conference and paid VAT on their hotel room and taxi ride from the airport, your company can still claim a VAT refund for this VAT. Therefore, you should check the reciprocity agreements for each foreign VAT return in each country. If your country has a reciprocity agreement with Germany, you can submit your German VAT application. But you cannot think that your country, for example, must also have a reciprocity agreement with Italy. The reciprocity regime could be very different. Hungary has already concluded mutual agreements with all other EU Member States, as well as with Switzerland, Liechtenstein and Norway. Serbia is now on the list. In general, each EU member state has a reciprocity agreement with any other EU member state. However, things get really complicated when your business is in a non-EU member state.
You will probably need a reciprocity agreement. It is necessary that the State of origin of the non-European company has a reciprocal agreement on VAT. Some countries require a tax officer to be in the country before granting refunds to non-European companies, for example. B la France. In addition, applications still need to be submitted by country, which often requires local and procedural understanding. Following an agreement between EU finance ministers, EU legislation to reform the system was adopted in February 2008 as part of the VAT package. The electronic system applies to all claims filed on Or after January 1, 2010. A reciprocity agreement is a reciprocal agreement on VAT refunds between two countries. For each EU country, you have to check: 20 EU countries, including Germany, Poland and the UNITED Kingdom, require reciprocity for the reintroduction of VAT, but each country sets its own rules.
Germany, for example, needs reciprocity and has a reciprocity agreement with more than 50 countries. But Slovenia and Greece have only a reciprocal agreement with two countries; Italy has a three-way mutual agreement. Hungary applies the reciprocity rule, as does Serbia, but the two countries have not yet reached a mutual agreement on the refund of VAT to other corporate taxpayers. To make your VAT recovery a little more difficult, some countries that claim reciprocity do not have a clear list of countries that have a mutual agreement with it. For example, if your employee travels to Estonia, Norway or Iceland, you should check your mutual status with your own VAT authorities to make sure your claim is valid. If a country requires reciprocity but does not have a mutual agreement with your country, then you cannot make VAT collection. Once you have received an accurate statement of all VAT amounts, you should check the reciprocity agreements for each EU country. Under the 13th Eu Directive, each EU member state decides for itself whether and under what circumstances a reciprocity agreement with any other Member State is necessary.