The United States does not charge a federal value-added tax, so there is no general US VAT refund for purchases made inside the country. The US uses state and local sales taxes instead, and those taxes follow different refund rules.
This guide focuses on US businesses that pay VAT in another country. In that case, the refund is generally claimed from the country where the VAT was charged, subject to that country’s eligibility rules, documentation requirements, reciprocity rules, and deadlines. Visitors looking for a refund on a US purchase should read the short sales-tax explanation below instead.
This article is educational information, not tax advice. A VAT refund can depend on the expense, the claimant’s business activity, local registration status, and the country’s current procedure.
Does the USA have a VAT refund?
No. The US does not have a federal VAT system, so a visitor cannot claim a standard “US VAT refund” at an airport or through a federal VAT portal.
If a traveller paid tax on a US purchase, the issue is usually a state or local sales-tax question. Some states have limited refund or exemption processes, but there is no nationwide tourist VAT-refund programme. A seller may be able to correct a sales-tax charge, or a state may provide a specific exemption, but that is not the same as reclaiming VAT.
The first step is to identify the tax printed on the receipt:
- VAT or GST: Usually claimed from the country that imposed it.
- US state sales tax: Governed by the state and local jurisdiction that charged it.
- Customs duty or import tax: Handled under customs or import procedures.
- Foreign income or withholding tax: A different tax analysis, which may involve treaty relief or a foreign tax credit.
Can a US business reclaim VAT paid abroad?
Potentially. A US business may be eligible to recover VAT paid on business expenses in a foreign country even though it is not established there. The refund is not automatic, and the business may need to show that:
- It is carrying on a business.
- The expense was incurred for business activity.
- The VAT was properly charged.
- The business is not required to register locally for the relevant supplies.
- The expense is eligible under the country’s refund rules.
- The business’s home country offers reciprocal treatment where required.
- The claim is submitted by the local deadline.
For EU claims, the European Commission’s VAT refund guidance explains that non-EU businesses can in some circumstances seek refunds from the EU Member State where the VAT was incurred. A Member State may restrict eligible expenses, require reciprocity, or require a tax representative.
The rules are country-specific. A company should not assume that a hotel invoice, trade-show cost, local transport bill, or professional-services invoice is refundable everywhere.
How a US business claims a foreign VAT refund
1. Identify the country that charged VAT
VAT is not reclaimed from the United States just because the business is US-based. Start with the country shown on the invoice and determine which authority handles refunds for non-resident businesses.
2. Confirm eligibility before collecting documents
Check whether the business is registered, established, or making taxable supplies in that country. A VAT registration may change the process: the business might need to recover input VAT through a local VAT return instead of a non-resident refund claim.
Also check whether the country excludes categories such as entertainment, passenger vehicles, meals, or employee expenses.
3. Preserve valid invoices
A card statement usually is not a substitute for a valid VAT invoice. Keep invoices that show the supplier, date, taxable amount, VAT amount, currency, and the business details required by the local authority.
If an invoice contains the wrong legal entity or VAT information, request a correction before submitting the claim.
4. Track deadlines and minimum amounts
Refund periods, minimum claim values, submission methods, and deadlines vary. Some countries accept electronic claims, while others require forms, original invoices, certificates of business status, or a local representative.
5. Submit and respond to questions
The tax authority may request additional invoices, proof of business activity, a power of attorney, or evidence that the expense was used for business. Track the claim and respond within the requested period.
What is Form 6166?
The IRS can issue Form 6166 as a certification of US tax residency after a business applies using Form 8802. Some foreign countries accept this certificate when a US business requests VAT relief or a VAT refund.
Form 6166 does not certify that the business qualifies for a foreign VAT refund. It only confirms the matters the IRS is authorised to certify. The foreign tax authority still decides whether the expenses, business activity, reciprocity, and other requirements qualify.
UK VAT refunds for US businesses
The United Kingdom has a specific process for refunds of UK VAT to businesses established outside the UK. HM Revenue & Customs’ VAT Notice 723A explains eligibility, evidence, and submission requirements.
A US business may need to provide proof of business status and satisfy the UK’s conditions for non-UK businesses. Check the current claim period and deadline before relying on an older form or calendar.
VAT refund versus VAT return refund
These terms are related but not interchangeable:
VAT return refund
A business registered for VAT in a country generally reports output VAT collected and input VAT paid on a local VAT return. If eligible input VAT exceeds output VAT, the business may request a credit or refund through that return.
Non-resident VAT refund
A business that is not established or registered in the country may use a separate refund procedure for eligible business expenses. The claim may go directly to the country where VAT was incurred and may require additional certificates or a representative.
Foreign tax credit
A foreign tax credit is a US income-tax concept. It does not automatically recover VAT, and VAT that is refundable under local law may need to be reclaimed before the business considers other tax treatment. Ask a tax professional to review the interaction before claiming a credit.
Common VAT refund mistakes
- Searching for a US federal VAT refund portal.
- Treating US sales tax as if it were VAT.
- Waiting until after the foreign deadline has passed.
- Submitting card slips instead of valid VAT invoices.
- Claiming personal or blocked expenses as business VAT.
- Forgetting that a local VAT registration may change the claim method.
- Assuming Form 6166 guarantees approval.
- Claiming a refundable VAT amount again as a foreign tax credit.
- Mixing invoices from multiple legal entities in one claim.
Businesses with regular international expenses should track VAT at the time of purchase rather than reconstructing invoices at year-end. VAT and GST identification numbers and VAT versus sales tax provide useful context, but the refund analysis still depends on each expense and country.
Kintsugi helps finance teams bring tax data from multiple jurisdictions into one workflow, monitor where registrations may be required, and keep compliance records connected to the transactions that created them. Learn more about Kintsugi VAT tax software for international registration monitoring and filing workflows.
Frequently asked questions
Can tourists get a VAT refund in the USA?
There is no nationwide US VAT-refund programme because the US does not have a federal VAT. A traveller should ask the state or seller about any sales-tax exemption or refund process that applies to the specific purchase.
Can a US company get back VAT paid in Europe?
Possibly. A US company may qualify for a non-resident VAT refund in the country where the VAT was paid, but eligibility, reciprocity, expense categories, documentation, and deadlines vary.
Do I claim foreign VAT from the IRS?
Usually no. The claim is generally filed with the foreign country’s tax authority or its designated portal. The IRS may provide residency documentation such as Form 6166 when the foreign process requires it.
Is a VAT refund the same as a tax credit?
No. A VAT refund is a recovery of eligible VAT under the country’s VAT rules. A foreign tax credit is a separate income-tax mechanism with different eligibility and substantiation requirements.
What records should a business keep?
Keep VAT invoices, proof of payment, expense purpose, claimant legal-entity details, country, tax period, refund calculations, residency certificates, submitted forms, and correspondence with the tax authority.
