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Refunds

    2 minutes reading Last updated: 5 March, 2024 By Michelle Bendix Lauritzen

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What is a refund?

A refund is a term that can be used in many contexts, often related to the repayment or compensation for the payment of a good or service.

It is also used in the context of businesses, governments, or other organizations. For example, there are VAT refunds where companies can get VAT refunded on travel expenses such as accommodation and meals when traveling abroad.

You can claim your foreign VAT and have it refunded with Acubiz

At Acubiz, we can help you apply for a refund of foreign VAT to get your money back. We handle everything so you can save time (and money).

Types of refunds

Refunds can occur in many different contexts. Below is an overview of several examples.

Healthcare

In Denmark, you can receive a refund if you have received treatment abroad. You can get all or part of your expenses refunded if you have been sick while on vacation. You may still receive a bill for treatment or medication, which you can apply for a refund for if the bill does not relate to a co-payment.

Application for refunds is made on the Danish Patient Safety Authority’s website, where you can read more about the refund.

Sick pay

If you are an employer and have an employee who has been sick for more than 30 days, where you still pay salary during the sick leave, you can get sick pay refunds from the employee’s municipality of residence. The refund will correspond to the sick pay your employee would have been entitled to if you did not pay them.

Application for sick pay refunds is made through NemRefusion on virk.dk.

Expense refunds

It is called an expense if you advance money for someone and pay out of your own pocket. It is also a type of refund because the person is refunded later. This often happens in a work context where an employee pays for coffee, lunch, parking, or a taxi during a sales meeting or conference.

You can handle expenses automatically with Acubiz

With Acubiz, employees can easily and quickly register an expense in the app and get the money refunded in the next salary.

Instead of collecting receipts in a pile until the end of a month, employees can take a picture of the receipt, register the expense in the app, and get approved by the finance department.

In addition to ensuring more accurate bookkeeping, it makes employees’ everyday lives easier, where expenses can be registered on the go.

VAT refunds

In Denmark, companies can get the VAT paid for travel expenses abroad refunded. VAT refunds apply, for example, to hotel stays and accommodation, access to trade fairs, or domestic transport by plane, taxi, or train.

You can read more about the requirements on the Danish Tax Agency’s website.

Do you want to know more?

At Acubiz, we are happy to handle your application for a refund of foreign VAT. We also offer other solutions for your company.

Contact us if you want to know how we can help your business or book a free online demo to learn more.

FAQ

Refund refers to reimbursement or compensation for municipal expenses. For example, it can be a VAT refund that businesses receive for the payment of VAT on travel expenses abroad.
A refund is a repayment of money that has been previously paid. For example, VAT-registered companies can receive a refund for VAT paid on hotel stays, transportation, and other expenses related to business trips abroad.
EU-registered businesses can reclaim VAT paid in other EU member states through the EU VAT refund scheme by submitting digital claims via their national tax authority's portal. Common refundable expenses include accommodation, meals, and fuel. Acubiz records the VAT amount and country for each expense, making it straightforward to compile refund claims.
EU VAT refunds typically take 4-6 months after submission, with a legal maximum of 8 months for the tax authority to process. Non-EU country refunds vary significantly by country and bilateral tax agreement. Companies with high volumes of international travel should consider specialist VAT recovery services to manage the administrative process.

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