Financing VAT Recovery


VAT recovery with financing works almost the same way as recovery under standard conditions – VAT recovery applications will be submitted either quarterly or annually when the minimum sum conditions are met.
With a separate agreement with Port1 it is possible to finance future receivables. This means that a client does not have to wait for the decision by the foreign tax-authority and client gets the money right away. After the VAT recovery application has been submitted, Port1 and client will sign an agreement, based on which Port1 will issue credit note in the sum of the receivable VAT refund amount to the client. Benefit with the financing is that the client gets the money right away and does not need to wait several months

How financing VAT recovery works

  • Client submits to Port1 the original invoices of the transactions done in other EU countries either right away or quarterly or annually.
  • Client sends request with the list of countries where financing in required to .
  • Port1 checks the minimum quarterly/annual fulfilment of minimum sums in given countries, checks all the invoices and sends offering and agreement for VAT financing.
  • Port1 submits VAT recovery application and then issues credit note to client.

NB! In every country, one company can only have one VAT recovery agent! When joining the system in any country then it’s not permitted to authorize any other entities for VAT recovery nor apply itself for VAT recovery.

Fee: Agreed separately on every application (depends on the country and number of invoices in the application).
Time until VAT is refunded: Clients gets the VAT sum back right after the application has been issued to foreign tax-authority.
Issuing the invoice: After the application has been issued.

Additional information:
Kristi – 6799 518,
Katri – on maternity leave
Pille – 6799 506,