In short: Foreign VAT refunds take 5 steps: you collect the receipts and invoices for the period in question, sort them according to each country’s conditions, fill in declaration 318 with the scanned documents attached, file everything electronically with ANAF (the Romanian tax authority) through the Virtual Private Space (with an electronic signature), and then check the status on the platform. The application must be filed by September 30 of the year following the refund period, and the amount requested must be over 400 euros for periods longer than 3 months but shorter than a year, or at least 50 euros for a calendar year. The money is refunded within 4 months at most, with some countries paying in less than 30 days.
A foreign VAT refund is the process through which a legal entity gets back part of the money spent on certain services. You may be one of the hauliers who don’t know that foreign VAT can be recovered, or you know about it but haven’t managed to do it so far because you didn’t know the process.
For hauliers, the largest expenses are those for road tolls and fuel consumption, which is why most hauliers want to know the process for recovering foreign VAT.
That’s why we want this information to reach as many people as possible, because it’s everything you need to know about the foreign VAT refund process.
What conditions do you need to meet to qualify for a refund?
Your company must be VAT-registered
Romanian law requires companies with an annual turnover above 300,000 lei to register for VAT, but you can also register below this threshold if it is in your interest (especially for transport companies).
You must have expenses eligible for VAT deduction in the country concerned
Keep in mind that not all countries allow VAT recovery for all categories. You can check here the countries that allow foreign VAT refunds.
The amount requested for the foreign VAT refund must exceed the set threshold
If the refund application covers a period shorter than one year but longer than 3 months, the VAT amount requested must be over 400 euros.
For refund periods of one calendar year or the remainder of a year, the amount requested cannot be less than 50 euros.
How do you apply for a foreign VAT refund?
- A foreign VAT refund is requested by filling in form 318;
- The form must be filed electronically, so you need to register in the Virtual Private Space (SPV) and have an electronic signature;
- You need to enter certain codes describing the type of goods or services paid for, which you can find here.
The foreign VAT refund application must be filed by September 30 of the year following the refund period. For example, for VAT paid in 2021, the filing deadline is September 30, 2022.
The 5 steps to follow for a foreign VAT refund
Step 1 of the foreign VAT refund is to collect all receipts and invoices for the period in question.
These may include:
- Fuel expenses;
- Road tolls; (e.g. HU-GO – Hungary)
- Vehicle repairs, car washes, auto parts, oils or additives;
- Accommodation services;
- Meals at accommodations / restaurants;
- Car rental, taxi / public transport services;
- Parking.
Step 2 is sorting the receipts and invoices according to each country’s conditions.
The countries that only accept invoices are: Hungary, Greece, Spain, Italy and Portugal.
Other countries also accept receipts but have their own conditions, for example: a maximum receipt value, or the company details printed on the receipt (at least the CUI tax ID and the company name).
Step 3 is filling in declaration 318 and attaching the scanned receipts and invoices (preferably in the order in which they were recorded).
In step 4, you file the documents with ANAF.
*If someone else files the documents for you (an accountant, another employee of your company or anyone else), you will need a power of attorney translated into the language of the country from which the money is being recovered.
A valid electronic signature is also required, as this application must also be filed in the virtual space – the ANAF platform.
All declarations must also be signed electronically:
- Go to the ANAF portal → the module Electronic declarations;
- Choose Legal entities from the left-hand menu, then EU VAT refund;
- Open the List of forms in the right-hand panel;
- Download form D318;
- Fill it in using Adobe V.8. See here for the instructions;
- Click the VALIDATE button to have any errors flagged;
- Sign electronically, save and press the SEND button. You should receive an acknowledgment of receipt by email.
Step 5 is checking the declaration number you received on the platform
You can check the status of your request by logging into your account on the ANAF website, under Filed declarations, then VAT refund. In the Declaration history section you’ll find all validation messages, including those from abroad. You will receive the decision by mail.
You can also find all the information you need in ANAF’s VAT Guide.
Note:
During the foreign VAT refund process, there may be communication between you and the advisors.
Case study – foreign VAT refund
To show you concretely the difference you’ll notice when you recover your foreign VAT, here is a case study.
By a simple calculation, if you refuel 800 liters of diesel (worth 3,900 lei) in Hungary, which has a VAT rate of 27%, you can recover approximately 829 lei.
Going even further, if you refueled 3,000 liters of diesel in a month in Hungary alone (worth 14,700 lei), you can recover no less than 3,125 lei.
How long does it take to get your money back?
The refund time depends on the country you submit the refund request to. You will wait no more than 4 months from the time you file the request, and some countries refund VAT in less than 30 days.
If a country is late in refunding the money, you have the right to claim interest on the amount owed to you.
The foreign VAT refund process requires a large number of documents, and it is not the quickest. Nevertheless, the amounts can be significant once the refund from the member state has been completed.
If you want to avoid the red tape but still get your money back, you can turn to a service specialized in this area. This way, you can focus on your business while refund professionals take care of your money.
You can find out more about this service if you click Click Here.
Who handles the foreign VAT refund application
You can go through the steps above in-house, but they take up office time and require knowing each country’s conditions. The alternative is to outsource the application.
CargoTrack handles the entire foreign VAT refund process for hauliers: collecting and sorting the documents, checking eligibility for each country and filing the application. Fiscal receipts are accepted too, not just invoices, and the initial consultation is free. No per-document fee is charged.
Details and a contact form on the page for our foreign VAT refund services.
Frequently asked questions
What conditions must I meet to recover foreign VAT?
Your company must be VAT-registered (mandatory above an annual turnover of 300,000 lei, but you can register voluntarily below this threshold), the expenses must be eligible for VAT deduction in the country concerned, and the amount requested must exceed the set threshold: over 400 euros for periods longer than 3 months but shorter than a year, or at least 50 euros for a calendar year or the remainder of a year.
How do I file a foreign VAT refund application?
You apply by filling in form 318 (D318), which is filed electronically with ANAF. You need to register in the Virtual Private Space, have a valid electronic signature and enter the codes describing the type of goods or services paid for.
What is the deadline for filing a foreign VAT refund application?
The application must be filed by September 30 of the year following the refund period. For example, for VAT paid in 2021, the filing deadline was September 30, 2022.
What expenses can be included in a foreign VAT refund?
You can include fuel expenses, road tolls (for example, HU-GO in Hungary), vehicle repairs, car washes, auto parts, oils or additives, accommodation services, meals at accommodations or restaurants, car rental, taxi, public transport and parking.
How long does it take to receive the money from a foreign VAT refund?
The refund time depends on the country you submit the request to: you wait no more than 4 months from filing the request, and some countries refund VAT in less than 30 days. If a country is late with the refund, you have the right to claim interest on the amount owed.
How much can I recover if I fill up with diesel in Hungary?
Hungary has a VAT rate of 27%, so for 800 liters of diesel (worth 3,900 lei) you can recover approximately 829 lei, and for 3,000 liters refueled in a month (14,700 lei) you can recover 3,125 lei.
Which company handles foreign VAT refunds for hauliers?
CargoTrack offers this service for transport companies: it takes over the documents, checks eligibility for each country and files the refund application. Fiscal receipts are accepted too, and the initial consultation is free.
How much does the foreign VAT refund service cost?
The cost is set individually, depending on the volume of documents and the countries involved. CargoTrack does not charge a fee per document. Ask for an assessment before starting the application.
