VAT - General information

Value Added Tax is assessed on goods and services in many foreign countries. However, foreign tax laws often provide that this tax applies only to residents of the foreign country, not to individuals or companies residing outside of the foreign country. Therefore, U.S. citizens or residents who do not reside in the foreign country can apply for a refund of the VAT. VAT certification certifies the type of North American Industry Classification System (NAICS) code the applicant listed on the return it filed or identifies the NAICS code for the business as represented by the applicant.

Countries that have VAT may require that IRS furnish evidence that a citizen, resident, or entity of the U.S. has filed a U.S. income tax return. They may also require that the person who filed is involved in a business activity.