Companies doing business in the USA are entitled to a VAT refund by recovering European Sales Tax or VAT (Value Added Tax), as it is more commonly known in Europe and the UK.
This European VAT Tax can account for as much as 25 percent of the cost of doing business in Europe.
Some examples of expenses where the VAT tax is charged on business expenses is hotels, conferences, exhibitions, restaurants, training courses, professional fees as well as most other business services. This is different to the United States tax system as the United States Government does not refund sales tax to foreign visitors.
A European VAT refund is offered to companies outside of Europe in order to encourage doing business in Europe. Each country has its own requirements and regulations for filing a VAT refund claim, and the forms and correspondence must be done in its local language.
It is best practice to outsource this specialized work to a professional VAT reclaim company, such as Global VaTax, who makes it convenient for companies to collect their VAT refunds. Global VaTax, a company which specializes in European VAT refund recovery has a fully operational office in New York City and assists companies in recovering these foreign VAT taxes.