Every year, thousands of companies across the European Union lose hundreds of millions of euros by failing to reclaim foreign VAT. These amounts don’t show up in balance sheets – but they silently drain company budgets.
🧾 What is foreign VAT?
Whenever a business pays for goods or services in another EU country – whether it’s fuel, tolls, accommodation, repairs, or equipment rental – it is entitled to reclaim the VAT paid.
This right is clearly protected under EU legislation.
But in reality, most businesses never use it.
💸 How much money is lost?
Estimates suggest that over €2 billion in foreign VAT goes unclaimed every year across the EU – simply because companies fail to file or submit incomplete applications.
In countries like Romania, studies show that over 70% of SMEs do not claim back the VAT paid abroad, mostly due to bureaucracy or lack of information.
🏗️ Not just transport companies – construction firms lose big too
Construction companies working abroad – in Germany, Belgium, the Netherlands – regularly pay VAT on:
crew accommodation
fuel for equipment
machine rentals
subcontracted services
Yet very few ever claim that VAT back.
🔍 A medium-sized construction company operating cross-border can lose €10,000 to €40,000 per year, just in unclaimed VAT.
⚠️ Why is VAT not claimed?
Different rules and portals for each country
Strict deadlines (sometimes as short as 6 months)
Language barriers and technical forms
Lack of internal resources
Mistakes in submission lead to denied claims without notice
The problem isn’t lack of funds – it’s lack of action.
✅ What can be done?
At Tax Back Consulting, we handle the entire process:
✔️ We know the rules in every EU country
✔️ We check your documents before submission
✔️ We identify missing invoices
✔️ And where possible, we recover VAT going back up to 2 years
👉 In some cases, we’ve helped clients recover over €50,000, even after their previous VAT agent said “there’s nothing more to do”.
📌 Conclusion
Unclaimed foreign VAT is one of the most overlooked sources of financial loss in European business.
But those who act on time get a clear advantage – with more liquidity, stronger budgets, and better margins.
Wondering how much your business has already lost?
Send us a message.
We offer a free review of the past 12–24 months.
Let’s bring your money back where it belongs.
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