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At one point in time, a business owner only had word of mouth as a means to gain sales and it could come down to who he knew. Businesses now have set guidelines that they must follow in order to operate, a system which was not as complex back then. Instead of dealing with just your neighbor, city, or state, the world has now grown seemingly smaller as a world economy has been reached and businesses rely on international import, export, and trade to continue to meet their financial demands.

Thanks to international trade many US businesses now look to work with businesses inside the EU. However this introduces new taxes such as VAT tax. VAT (Value Added Tax) is a tax is can cost up to 25% percent of goods and services traded to European countries (as well as Japan and Australia). While this can be a huge amount of money that goes to a tax, there is a silver lining. Most countries in the EU offer refunds to the VAT paid by international businesses. With this VAT recovery system, no company should ever consider international VAT a cost and lose valuable profits.

While this is not an exhaustive list, the typical services that are eligible to receive VAT refunds are: * Tradeshows * Conferences * Television Productions * Logistics and Warranty Products * Import VAT * Seminars and services between internationally located companies * Drop-shipping * Research expenditures, as well as development

If you were looking to reclaim some of the VAT you have paid it is best to use a VAT reclaiming service – go to VAT compliance for extra data on this issue. They go through all of the services or products you have purchased which are eligible for a VAT refund and take you through the necessary paperwork up until the found you save your money.

One thing to keep in mind is that for certain goods or services, VAT registration may be necessary to claim any VAT refund in the European Union, Japan, or Australia. VAT registration is a process that happens before you conduct business internationally. During this process you will be registered for VAT inside the EU country you wish to trade in, this will add VAT rates on to invoices and give you a VAT number to use.

It is important to determine whether or not your business is required to register; in some cases, late registration can mean you will not receive any VAT refunds.