Reclaiming VAT from Italy applies to your business if you are established in the Netherlands, are liable to pay VAT on your turnover, and have incurred business expenses in Italy on which Italian VAT has been charged — think of fuel, a hotel stay, a trade fair stand or transport. It does not apply if you do not deduct VAT from your turnover, if you are already registered for VAT in Italy, or if you are travelling as a private individual.
The essence of the scheme is straightforward, even if the portal work feels otherwise: you are entitled to reclaim the VAT you have paid in Italy because you cannot offset it there in the way you can in the Netherlands. Directive 2008/9 provides that you can do this through a single digital portal of the Dutch tax authority, which forwards your request to the Italian tax authority. Whether this is worthwhile for your business depends on a number of concrete points.
For whom this does apply
The scheme is not tied to a sector or the size of your business. A sole proprietor who travels to a trade fair in Milan once a year falls under it just as much as a limited company with a fleet of vehicles that travels through northern Italy weekly. What matters is whether you are established in the Netherlands, whether you are liable to pay VAT on the turnover you report in the Netherlands, and whether the Italian VAT on your receipt or invoice is clearly specified.
Common examples: an installer who works on site and refuels and stays overnight there, a trading company that exhibits at an Italian trade fair, a transport company that pays tolls and fuel, or a service provider who travels to Rome for a client. In all these cases, the Italian VAT is in principle an expense that you can reclaim, provided the expenditure is business-related and falls within the categories of expenses that Italy permits for this scheme.
When it does not apply to your business
There are a few situations in which the scheme does not apply, and these are often overlooked in practice. First: if your business is exempt from VAT — some healthcare, education or financial service providers, for example — and for that reason you cannot deduct VAT in the Netherlands either, then the same principle applies to foreign VAT. The right to reimbursement is linked to the right to deduction, not to the mere fact that you have paid VAT.
Second: if your business is already registered for VAT in Italy, for example because you store goods there or supply directly, then the offsetting takes place via your Italian VAT return and not via this procedure. The two routes cannot be combined for the same expenses.
Third, the scheme only applies to entrepreneurs who are established in the Netherlands. If you are established elsewhere in the EU, your request goes through that country's portal, not through the Dutch tax authority. Those not currently working from the Netherlands can register for the waiting list.
Finally, the volume also counts: there is a minimum amount per request, and individual receipts of a few euros often do not reach that amount. It only becomes clear whether filing is worthwhile once costs are added up over a period.
If you are unsure
Whether your specific situation falls under the scheme depends on how your business is structured for VAT purposes and what exactly is on your Italian invoices. This is different from the general question of whether the scheme exists — for that low-threshold test, an indication is often sufficient. see in a few questions whether it is worth your while provides an initial picture of this, without you having to supply anything.
If you are certain that the costs are business-related but uncertain about the tax classification of your own business — for example, in case of partial exemption — that is a question for a VAT specialist, not for a processor. Vatea.eu handles the submission and monitors the process, but does not provide tax advice on the status of your business.
If your business is normally VAT-taxable and the Italian costs are accumulating, the next step is not complicated: worked out per country what you need shows which documents and information apply to Italy, and how the process from receipt to payment works provides a complete picture before you commit to anything.
Still unsure whether it is worth your while for your business? Then first do the free quick-scan or browse the knowledge base on vatea.eu — both can be consulted without an account and provide a concrete answer within a few minutes.