05/06/09 - The OECD has today launched a new survey into the VAT “lost” by businesses due to the difficulties of recovering tax incurred in countries other than their own.
Businesses frequently incur VAT in countries where they don’t need to be registered for the tax. A number of countries provide systems for refunding this VAT but many businesses find it difficult to successfully obtain these refunds. There are probably several reasons why this is so. This survey is aimed at businesses so that they can help provide the OECD with a better understanding of why these refunds can be difficult and what remedies might exist. This is a unique opportunity to provide input in this work.
The survey consists of a electronic questionnaire which can be completed in about 15 minutes. It has been designed by both business and government representatives and has been tested for its simplicity.
Many businesses have indicated that they would like more time to complete the survey on refunds, we have extended the deadline for replies to Friday 14 August. All businesses that have experience of these difficulties are urged to complete the survey. The results will be made available later this year.
This work is part of the OECD International VAT/GST Guidelines currently under development. The Guidelines provide that the burden of value added taxes themselves should not lie on taxable businesses except where explicitly provided for in legislation.