Foreign VAT/GST Refunds – What problems and costs does your business incur when recovering VAT/GST abroad?

The OECD International VAT/GST Guidelines currently under development provide that the burden of value added taxes themselves should not lie on taxable businesses except where explicitly provided for in legislation. A number of jurisdictions that have implemented this principle allow non-established businesses to recover the input VAT/GST incurred in these jurisdictions. However, this right is applied in varied ways across jurisdictions and recovery procedures, where they exist, can be complex and impose significant compliance burdens. As part of the development of the Guidelines in this area, the OECD has developed a questionnaire to be completed by businesses in order to assess the magnitude of the issue. Responses to this questionnaire should be sent to the OECD Secretariat by Saturday 20 September 2008.