VAT Refund for Businesses from Non-EU Member States

General Requirements for VAT Refunds

To participate in the VAT refund procedure in Germany, a business not established in the EU must meet the following conditions:

• No taxable supplies must have been made in Germany during the respective refund period. However, supplies where the tax liability is shifted to the recipient or those subject to individual transport taxation are not detrimental.
• The refund application must be submitted within six months after the end of the calendar year in which the refund claim arose. The deadline for applications for the year 2024 is therefore June 30, 2025.
• Original invoices and import documents must be submitted with the application.
• The requested refund amount must be at least €500 if the refund period covers the entire calendar year.
• Proof of business status must be provided through an official certificate from the applicant's country of residence (Entrepreneur Certificate).

Introduction of E-Invoicing in Germany

With the introduction of mandatory electronic invoicing in Germany from January 1, 2025, there are significant changes for the submission of invoices in the VAT refund procedure. Since paper invoices may no longer be available as "originals" for submission, the BMF had to clarify how electronic invoices should be presented in future VAT refund applications.

E-Invoices in the Refund Application

The BMF letter dated March 27, 2025, stipulates that electronically transmitted invoices (e-invoices or other invoices in an electronic format) may be submitted in one of the following ways:

• Via a storage medium (e.g., USB stick).
• By uploading them to the Federal Portal (BOP), which is operated by the Federal Central Tax Office.

Additionally, the Entrepreneur Certificate can now also be submitted digitally, provided it matches the content of the previous paper certificate template.

Implementation and Practical Consequences

The new regulations apply immediately to all open cases. E-invoices will probably constitute the majority of all invoices in Germany by the end of the transition period on January 1, 2028, at the latest. Businesses from non-EU countries intending to apply for a VAT refund should ensure that their digital records comply with the new requirements.

The VAT Implementation Decree will be updated accordingly to reflect these new guidelines.