Hassles Free Global VAT Refunds to be Globally Competitive

Srusti Management Review, Vol. 1, No. 1, pp. 7-26, July-December 2008

21 Pages Posted: 25 Feb 2011 Last revised: 31 Jul 2012

See all articles by Pawan K. Chugan

Pawan K. Chugan

Nirma University - Institute of Management; AIIM - Ahmedabad; SPM - PDPU

Date Written: February 24, 2011


In the global business, competitiveness has become a buzzword and to achieve it every enterprise has been looking for the cost reduction methods in production and marketing of goods internationally. One of such element of on this account is getting the international VAT refunds from the foreign tax authorities which knowingly or unknowingly is not being claimed by many firms because of complicated rules, regulations and time consuming and cumbersome refund systems. The expenses on VAT, therefore, are normally included in the cost of production and marketing, which otherwise can be saved by reclaiming VAT from the foreign tax authorities to increase profitability of the units engaged in international business.

The paper gives the international VAT coverage and background of VAT in EU, explains the VAT’s concept, describes its common features the world over, gives illustrative VAT refund rates and policies, states advantages of outsourcing of such VAT refunds and prescribes these refunds as source of cost reduction to be competitive in the international business. Attempts have been made in this paper to create awareness of VAT refund system amongst the managers/executives employed or inspiring to joint the firms engaged in international business, so that they can claim the legal dues of their firms from the foreign tax authorities without going through complicated procedures and spending their precious time and money by availing the services of VAT Recovery Agencies i.e. to get the VAT refunds hassles free. And for that, paper also provides brief details of select VAT recovery agencies that may be approached for further information and their services.

Keywords: Value Added Tax (VAT), Global VAT Refunds, VAT Recovery Agencies, VAT Coverage and Background of VAT in EU, Outsourcing of VAT Refunds

JEL Classification: E6, F23, F42, H2, H32, H87, K34

Suggested Citation

Chugan, Pawan Kumar, Hassles Free Global VAT Refunds to be Globally Competitive (February 24, 2011). Srusti Management Review, Vol. 1, No. 1, pp. 7-26, July-December 2008, Available at SSRN: https://ssrn.com/abstract=1768664

Pawan Kumar Chugan (Contact Author)

Nirma University - Institute of Management ( email )

Sarkhej Gandhinagar Highway
Ahmedabad, GUJARAT 382481

HOME PAGE: http://pawanchugan.wordpress.com

AIIM - Ahmedabad ( email )

Adani Shantigram, Vaishno Devi Circle
S.G. Highway
Ahmedabad, Gujarat 382421

HOME PAGE: http://pawanchugan.wordpress.com/

SPM - PDPU ( email )

Gandhinagar, Gujarat 382007

HOME PAGE: http://pawanchugan.wordpress.com/

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