EU VAT Recovery: 3 Must-Ask Questions for VAT Reclaim Providers

The VAT reclaim landscape is tricky enough - selecting a VAT reclaim provider doesn’t have to be. But unfortunately, more often than not, businesses struggle to match their needs with the right VAT reclaim service provider. Why? Well, determining your niche VAT needs and obligations in the EU might be where the challenge starts in the first place. 

To help you find the right fit, we’ve looked at VAT reclaim in the EU and which questions to ask when it comes to choosing the right VAT recovery specialist.

1. Do they understand your industry? 

When vetting potential VAT reclaim service providers, it’s important that you take a look at the nitty-gritty. Yes, it’s great if a reclaim provider can give you a broad generalization or overview of their services, but ultimately, you need a provider that can pick apart and conquer even the most specialized and niche industries and VAT processes. Therefore, it’s important to be mindful of whether or not a provider caters to your specific industry. Each industry in the EU is subject to different VAT regulations and different reclaim processes. A provider with expert knowledge in your field (and on the field), is a far better pick. 

2. What is their global reach? 

For businesses that have a global reach, it’s essential to consider whether the VAT reclaim provider handles non-EU VAT recovery or is confident in navigating through recovery in multiple countries. The right VAT reclaim provider should have strong knowledge of the multiple cross-border VAT regulations and how they affect your business. Morseo, many foreign VAT reclaim processes are handled in the native language of that country. Does the provider have a robust network in the field in order to liaise with the relevant tax authorities? Without an in-depth domestic and foreign VAT recovery solution, your business will not be able to maximize its VAT potential. Moreso, it could open you to some potential compliance issues. 

3. How does their cost and fee structure work? 

Now this question can apply to most situations when evaluating and vetting a potential provider. Still, when it comes to VAT reclaim, it’s definitely worth mentioning. Ask the provider about their fee and cost structure and evaluate whether or not it aligns with your budget. Ultimately, the goal is for your business to maximize its VAT potential, while reducing the administrative burden on your team. However, that doesn’t mean it should drain other resources. Some providers follow a ‘no-win, no-fee’ basis. This means that clients only pay fees once the submitted claim is successfully recovered. This is a great approach for businesses that are looking for additional peace of mind. 

VAT reclaim is hard, choosing the right provider shouldn’t be

Now that you’ve possibly created a shortlist of top providers, it’s time to check out their features and benefits and whether or not they align with your specific VAT needs, business goals and regulatory obligations. 

For more information on how to evaluate VAT reclaim software, head on over to our post which dives into the topic.