What Costs Can I Reclaim on My VAT Return?

If you're VAT-registered in a country where your business isn't established, you may be able to reclaim VAT on certain costs related to your activities there. This article explains what's typically claimable and what you'll need to support your claim.

Costs that are usually reclaimable

Import VAT

When you import goods into a country, you'll usually pay import VAT. This is typically shown on customs documentation or an official certificate from the tax authority, and can often be reclaimed on your VAT return.

Shipping and freight

If a local supplier charges you VAT on shipping or freight costs for stock sent into the country, this is usually reclaimable. You'll need a valid VAT invoice from the supplier.

Fulfilment and storage fees

VAT charged on fulfilment centre costs—such as storage and handling fees—can usually be reclaimed. Make sure you have VAT invoices or reports showing the VAT charged.

Marketplace fees

Some fees charged by marketplaces like Amazon may include local VAT. Where they do, these are typically reclaimable. Check your fee invoices or settlement reports to confirm whether VAT was charged.

What you'll need

To reclaim VAT, you'll generally need:

• Valid VAT invoices showing the supplier's VAT number, the VAT amount, and your business details

• Customs documentation or certificates for any import VAT

• Marketplace reports showing VAT charged on fees

Keep these documents safe—tax authorities may ask for them if they review your return.

A few things to keep in mind

• You can only reclaim VAT on costs that relate to your VAT-taxable business activities in that country

• Costs must be supported by proper documentation

• Rules vary by jurisdiction, so what's reclaimable in one country may differ in another

Need help?

If you'd like to discuss what's reclaimable in your situation, get in touch with our team at support@taxually.com. We're happy to point you in the right direction.