Freight transportation through Europe involves a series of processes and essential certificates so that fleets can complete their routes with maximum safety and comfort, some of which involve the payment of taxes. To this end, it is important to understand the tax refund process.
Andamur can tell you all you need to know about certificates, taxes and tax refunds if you’re going to transport freight through Europe.
IMI Certificate in Transporting Freight by Road
The SIPSI Certificate, commonly known as the Macron Law, ceased to exist at the start of this year. In its place, the IMI Certificate in Transporting Freight by Road came into force on 2 February 2022. This regulation specifies that transport firms who undertake international transportation are obliged to declare the posting of their drivers beforehand. Companies have eight weeks to submit the documents following such an application.
European Union Directive 2020/1057 is applicable to this certificate and it establishes a consolidated online portal (Road Transport – Posting Declaration) for the submission of all documents and communications (supporting documentation for payments during the posting and salary payments, driver working hours, employment contract, etc.) which used to be sent to each country separately. For this reason, it is no longer necessary to appoint a representative in France to complete the formalities.
A certificate is required per number plate and country, and it is valid for a maximum of 6 months.
TIPP – Domestic Consumption Tax on Petroleum Products
If you travel to Belgium, you must take into account the Domestic Tax on Petroleum Products (TIPP).
This tax is applicable to all Corporate Tax ID numbers in Europe and declaration is on an annual basis. With this tax, the tax recovery process is really long given the resolution time is from 6 months to 1 year.
A partial refund of the tax on energy products set by the Belgian government is granted but this only applies to freight transportation. In addition, the rebate limit is established per vehicle and year.
TICPE – Domestic Consumption Tax on Energy Products
The Domestic Consumption Tax on Energy Products (TICPE) in France applies to all Corporate Tax ID numbers in Europe.
For tax recovery purposes, a partial refund of the tax on energy products is granted, established by the French government.
The refund applies to freight transportation and passenger vehicles. There is a fixed rebate limit per vehicle and quarter. It is reported quarterly, and the resolution time is one month.
Some special requirements apply to the refund, such as a minimum vehicle weight of 7.5 tons, the vehicle must be registered in the EU and the minimum consumption amount is 4,000 litres.
Commercial Gas Oil
If you travel through Spain, you can request a partial refund of the Mineral Oil Tax on Commercial Gas Oil.
This rebate is applied both on the transportation of goods and passenger vehicles, and it can apply to all Corporate Tax ID numbers in Europe, although there is a fixed rebate limit per vehicle and year.
The rebate amount is €0.049 per litre. It is reported quarterly and the maximum consumption amount must be 50,000 litres per year per vehicle and number plate.
To request a refund, the required documentation must be submitted, and the resolution time is 1 to 3 months.
If you travel through Europe and you have a Corporate Tax ID in Spain and Portugal, you can request a refund on VAT paid on products and services related to activities during your trips, such as fuel, toll charges, hotels, taxis, ferries, repairs, holidays, etc. The rebate amounts vary depending on the country and the type of consumption.
The reporting period is quarterly (€400 minimum) or annually (€50 minimum) and VAT can be totally recovered from European invoices within a maximum resolution time of 4 months as established by law.
Invoices must be submitted from all suppliers. Germany and Luxembourg do not accept receipts, they must be invoices. France accepts some receipts, but they must bear a stamp and a Tax ID Number on the back. A different invoice must be created for each country from which the VAT is being recovered.
Liquid Assets Billing System
This system is a service that Spanish companies provide to Portuguese companies for journeys made in Spain given that only the taxable amount on invoices for their refuelling in Spain is chargeable to the customer.
It only applies to Portuguese Corporate Tax ID numbers and the expenses are invoiced in Spain excluding VAT. They are submitted quarterly, and the resolution time is 4 months as established by law.
We at Andamur are committed to freight transport companies so they can conduct their journeys through Europe hassle-free.
This is why we help companies in their recovery of VAT and special taxes, as well as with the IMI Certificate in Transporting Freight by Road, while avoiding bureaucratic processes and the involvement of legal counsel in a simple way. All our services also come with Andamur’s guarantee, minimal fees and a bespoke service provided by experts.
With all that we offer, we’re progressing in our aim to help companies in the freight transport sector become more profitable.