The Irish Revenue has confirmed the agreement in principle by EU Member States to postpone the deadline for the submission of electronic VAT refund requests related to 2009 expenses from September 2010 to March 2011. The European Commission issued a press release in July outlining its proposal to seek the extension. This was on foot of problems experienced by taxpayers with the electronic refunds system launched in 2010 for refund claims of VAT on business expenses incurred by taxable persons in a Member State in which they are not established.
While the Irish Revenue’s system is operating efficiently, the electronic systems in a small number of EU Member States experienced technical problems which have lead to calls for an extension of the deadline.
An official communiqué is expected to issue from the Commission before 30 September confirming details of the extension.
The VAT Refund Directive came into force on 1st January 2010 and allows for the refund of VAT on business expenses incurred by taxable persons in a Member State in which they are not established. It introduced an electronic system by which the taxable person submits his application for a refund via a web portal developed by the Member State in which he is established. Member States were obliged to make this web portal available on 1st January 2010.