Yes. In this case, three scenarios are possible...
Scenario 1: You are VAT registered in this country. In this case, you have to inject the expenses and the related input VAT into your local VAT returns.
Scenario 2: This country is a European Member state, but you are not registered there. In this case, as a foreign company, you will have to submit a VAT claim through the European VAT refund procedure. Start preparing and sending this claim here.
Scenario 3: It is a third country (non-EU) and you are not registered there. It is a third country (non-EU) and you are not registered there. In this case, you have to check the following:
- (a) Is the tax in general recoverable? Not all sales taxes can be reclaimed (e.g. GST in the USA).
- (b) If the tax is recoverable, you need to check if the country of refund allows companies from your country to reclaim the VAT. Some countries limit the rights to claim to some selective countries only.
- (c) If the country has a reciprocity policy in place with your country, you are allowed to claim your VAT back under a specific procedure.
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