Therefore, you need to check the reciprocity agreements for each foreign VAT return in each country. If your country has a reciprocal agreement with Germany, you can apply for German VAT. But you can`t think that your country, for example, should also have a reciprocity agreement with Italy. The reciprocity regime could be totally different. In addition, you need to obtain a local certificate of taxable status for your VAT return in some countries like Norway, while other places (like Holland) only need a certificate of taxable status, but do not need reciprocity. Finally, some countries, such as Switzerland, must appoint a local tax representative to process your VAT returns in that country. As we can see, the reciprocity law is an integral factor in the search for VAT refunds from abroad. Ultimately, understanding reciprocity laws will help you avoid wasted time trying to get a refund from a jurisdiction that doesn`t allow it. In addition, certain situations where Spain accepts VAT returns from companies in countries that do not have a reciprocity agreement. Therefore, if your company is located in Sweden, which does not have a reciprocity agreement with Spain, but your employee went to Spain for a conference and paid VAT on his hotel room and taxi ride from the airport, your company can still claim a VAT refund for that VAT. Twenty EU countries, including Germany, Poland and the UK, are demanding reciprocity for VAT recovery, but each sets its own rules. Germany, for example, requires reciprocity and has a reciprocal agreement with more than 50 countries.

But Slovenia and Greece only have a reciprocal agreement with two countries; Italy has reached a three-party mutual agreement. From 1 January 2015, in the country where the employer or professional applicant is established, no reciprocal agreement is necessary with regard to the goods and services listed below: in short, the principle of reciprocity is a give-and-take relationship. In the context of foreign VAT, it is reciprocity that determines which countries can require which other countries to refund VAT. In other words, foreign VAT refunds are granted when a country is refunded….