Reclaiming EU VAT on Expenses 2026 — 13th Directive Guide

If your business pays for EU-based services — cloud hosting (Hetzner, OVH), software licences, contractor invoices, or travel expenses such as hotels and fuel — you have likely seen EU VAT added to your bill.

Because you are not VAT-registered in the EU, you cannot offset this on an EU return. This leads to a common question: can we get that money back?

The answer is yes in theory, but the reality is significantly harder than most business owners expect. This guide explains the mechanisms available, why the One Stop Shop will not help here, and how to decide if a claim is worth the effort.

Can You Get Your Money Back?

You can reclaim EU VAT paid on business expenses, but not through the EU’s One Stop Shop (OSS) portal and not through your domestic VAT return.

You must use a specific mechanism called the 13th Directive Refund. This involves applying directly to the tax authority of each individual EU country where you incurred the expense.

What to expect:

The process is manual and document-heavy.
Refunds take 6 months to over a year.
Claims are frequently rejected for minor invoicing errors.
Unless you are reclaiming thousands of euros, the administrative cost often exceeds the refund value.

Why OSS Does Not Help Here

A common misconception is that the Non-Union OSS handles all EU VAT matters.

It does not. The OSS is an output VAT scheme only.

It is designed for you to pay VAT to the EU on your sales to consumers.
It has no mechanism for recovering “input VAT” — VAT you paid to your suppliers.

If you are registered for Non-Union OSS in Ireland and you pay VAT on a German server subscription, you cannot subtract that German VAT from your Irish OSS payment. They are completely separate systems.

The 13th Directive Refund

Non-EU businesses use the 13th VAT Directive (86/560/EEC) to claim refunds from EU member states.

How it works

You submit a claim to the tax office of the EU member state where the VAT was charged. You must demonstrate that:

Your business is established outside the EU.
You are not VAT-registered (and are not required to be) in that specific EU country.
The expenses were incurred for business purposes.

Reciprocity

Some EU countries only grant 13th Directive refunds if the claimant’s country offers a similar courtesy to their businesses. Check whether your home country has a reciprocal refund arrangement with the relevant EU member state.

Germany, France, and the Netherlands are generally efficient processors. Some Southern and Eastern European member states can be significantly slower.

Minimum claim amounts

Most countries will not process small claims. Typical thresholds:

Quarterly claims: minimum approximately €400 in VAT
Annual claims: minimum approximately €50 in VAT

The Process in Practice

If you decide to proceed:

Separate applications per country. One application per EU country where you had expenses. Three countries = three different tax offices.
Original invoices. Many countries still require original paper invoices (or certified digital copies) submitted by post.
Strict deadlines. The deadline for a 13th Directive claim is typically 30 June or 30 September of the following calendar year depending on the country. Miss it and the money is gone.
Language requirements. Forms and correspondence are often in the local language of the tax authority.

The Alternative: Local VAT Registration

If you have high and regular expenses in one specific EU country — for example, you spend €50,000 a year on a German data centre — the 13th Directive is the wrong tool.

In that case, it often makes more sense to register for a local VAT number in that country. This lets you:

File regular VAT returns
Offset input VAT (expenses) against any output VAT (sales)
Get refunds much faster than the 13th Directive route

When this makes sense: High, recurring spend in one country.

When it does not: Small, sporadic expenses across five different countries. The cost of five sets of EU VAT filings would be disproportionate.

Fixing It at Source: Reverse Charge

Before filing a 13th Directive claim, check whether you should have been charged VAT at all.

B2B services

Under EU B2B rules, if you are a business buying a service (software, consulting, hosting) from an EU business, the place of supply is your country — not the EU.

The supplier should not charge you EU VAT.
They should zero-rate the invoice and mark it “Reverse Charge.”

The problem: many EU suppliers default to charging local VAT unless you provide a valid EU VAT number. If you do not have one, they charge it automatically.

The fix: you cannot reclaim this through the 13th Directive because the VAT was charged in error. The tax office will tell you to go back to the supplier. Ask the supplier to correct the invoice, treat you as a non-EU business, and refund the VAT directly.

Travel and physical goods

VAT on hotels, meals, fuel, or over-the-counter purchases is correctly charged — you cannot reverse-charge a hotel stay. This is what the 13th Directive is actually designed for.

Cashflow Reality

Do not treat EU VAT reclaims as receivables in your cash forecast.

Tax offices treat these as low priority.
A single missing digit in your address or a slightly non-compliant hotel invoice is enough for a total rejection.
Specialist firms that handle the process for you typically charge 20–30% of the refund as a fee.

The practical rule: treat EU input VAT as a cost of doing business. If you get it back, treat it as a bonus.

Decision Tree — Is It Worth Claiming?

Is the VAT amount in a single EU country over €500?

No: Probably not worth the paperwork. Move on.
Yes: Continue.

Do you have original, fully compliant VAT invoices showing your business name and address?

No: The claim will be rejected. Move on.
Yes: Continue.

Is the country known to be cooperative (Ireland, Netherlands, Germany)?

No: Prepare for a 12-month or longer wait and possible rejection.
Yes: A claim may be worth the effort.

Selling from a Specific Country?

The 13th Directive process above applies to any non-EU business. Some countries have specific context:

United Kingdom — The reciprocity basis for EU countries accepting claims from non-EU businesses is important for businesses based in the post-Brexit context. There are also specific interactions between the 13th Directive and how OSS registrations are handled by HMRC. See the UK guide to reclaiming EU VAT on expenses.
United States — guide coming soon
Australia — guide coming soon