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Don't Miss June 30 European VAT Recovery Deadline - by John Bain 

Global Tax Adviser


April 02, 2013


John Bain
Toronto, Indirect Tax


June 30, 2013 is an important date for Canadian business that may be eligible to recover value-added tax (VAT) paid to many European Union (EU) member countries. In many cases, VAT paid in 2012 may not be recoverable if the required documentation is not filed with the respective EU authority by this date.

Canadian companies doing business in the EU are often required to pay local VAT charges. VAT is usually charged on purchases and costs incurred locally within an EU country. This charge applies not only to commercial goods for further distribution but also to hotel costs and other travel expenses, as well as certain services. Furthermore, VAT is normally charged on imports from non-member countries.


Act fast for VAT recovery
In many EU countries, taxpayers may generally recover the VAT charged on purchases and costs related to their businesses, even if they are not registered for VAT in a particular country as a foreign taxpayer. However, certain restrictions may lead to unrecoverable VAT, including whether a reciprocity agreement is required, the nature of the business, and the nature of the costs.


The deadline in most EU countries for a VAT reclaim for 2012 is set for June 30, 2013. For this reason, Canadian businesses with potential EU VAT claims should take action quickly. In many EU countries, missing this deadline could lead to unrecoverable VAT.


For more information, contact your KPMG adviser.






Information is current to April 02, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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