The EU Commission has announced the extension of the deadline for refund requests for 2009 from September 2010 to March 2011. This move is in recognition of the fact that some Member States were late in launching their web portals, whilst others have had a number of technical problems in getting them up and running. This has led to a situation in which taxable persons have not been able to submit their refund applications.

Members of Chartered Accountants Ireland have noted difficulties in making online refund requests and delays in receiving the refunds and these concerns have been raised at TALC. While Chartered Accountants Ireland welcomes the extension of the deadline, further measures are required to ensure prompt refunds of VAT under the new system.

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 introduces 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.

Full details of the Commission's press release is available at http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/950&format=HTML&aged=0&language=en&guiLanguage=en